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stiks02 [169]
3 years ago
12

On January 1, 2017, a subsidiary sold equipment to its parent for $520,000. The subsidiary's original cost was $200,000 and as o

f January 1, 2017, $20,000 in depreciation had been recorded on the subsidiary's books. At the date of sale, the equipment had a 10-year remaining life, straight-line. It is now December 31, 2021 (5 years since the sale), and the parent still holds the equipment. In the consolidation eliminating entries for 2021, the equipment account (gross cost) is reduced by a net amount of A. $280,000 B. $300,000 C. $340,000 D. $320,000
Business
1 answer:
Mnenie [13.5K]3 years ago
7 0

Answer:

C. $340,000

Explanation:

Compute the Subsidiary's Unrealized Profit

This will help to determine, this will help us get the amount by which the Equipment Account will be reduced.

First, we calculate the Unrealized profit made on selling of the equipment

The equipment was sold for $520,000

The original cost to the Subsidiary was $200,000.

Furthermore, the Accumulated Depreicaiton of the Asset = $20,000

The Net Book Value of the Equipment = Cost - Accumulated Depreciation

The Net Book Value = $200,000 - $20,000 = $180,000

The Profit on Sale of the Equipment

= Sales Value - The Net Book Value

= $520,000 - $180,000 = $340,000

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Answer:

$9,950

Explanation:

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Total Assets=Total liabilities+Total equity

Total assets=Current+Non current assets

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Non current assets=Cost of land+Cost of equipment-accumulated depreciation on equipment

Current assets+Cost of land+Cost of equipment-accumulated depreciation on equipment=Total liabilities+Total equity

Applying given data in the question to the above equation

$19,800+$15,000+Cost of equipment-$1,550=$44,750

$33,250+Cost of equipment=$44,750

Cost of equipment=$44,750-$33,250=$11,500

Amount of equipment on balance sheet=$11,500-$1,550=$9,950

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the answer is as follows

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As an HR manager in charge of employee appraisal, Bernice Hunter uses an appraisal method that utilizes narrative information, s
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Answer: Behaviorally anchored rating scale

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