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masya89 [10]
3 years ago
10

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

s of 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____________
Business
1 answer:
Triss [41]3 years ago
7 0

In the consolidation eliminating entries for 2021, the equipment account (gross cost) is reduced by a net amount of <u>$340,000</u>.

<u>Explanation</u>:

<em><u>Given</u></em>:

Selling cost of equipment = $520,000

Original cost of the equipment = $200,000

Depreciation of asset = $20,000

The net amount of the Equipment = Original cost - Accumulated Depreciation

The net amount = $200,000 - $20,000 = $180,000

The Profit on Sale of the Equipment = Selling cost - The net amount

                                                                = $520,000 - $180,000

                                                                = $340,000

The equipment account (gross cost) is reduced by a net amount of <u>$340,000 </u>.

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soldier1979 [14.2K]

Answer:

Variable  cost per unit = $1.5  per unit

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Which best describes the main role of the three major credit reporting agencies?.
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The best three main roles of major credit reporting agencies are:

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<h3>What is a credit reporting agency?</h3>

A credit reporting agency is a company that keeps track of people's and companies' credit histories. They get information from creditors and other sources, which they put into a credit report, which incorporates a credit score when it's released.

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Learn more about credit reporting agencies here:

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3 0
2 years ago
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Answer:

     a. 5 years

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Explanation:

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3 years ago
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Dafna11 [192]

Answer:

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