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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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Morgana Company identifies three activities in its manufacturing process: machine setups, machining, and inspections. Estimated
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Answer and Explanation:

The computation of the overhead rate for each activity is as follows;

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2 years ago
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3 years ago
During the current month, Grey Company sold 60,000 units for $10 each. Each unit had an equivalent cost of $6 each. The journal
Romashka [77]

Answer:

The sale entry would be:

Dr Trade Receivable  $ 600,000

Cr                     Sale            $600,000

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Cr Finished Goods account  $360,000

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As we know the sale is credit in nature and inventory sold on credit increases the trade receivable which is debit in nature.

So the entry would be:

Dr Trade Receivable  $ 600,000

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And the inventory sent out of warehouse to customer would be recorded as:

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So for the sale of 60,000 units the total cost of equivalent will be:

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