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Fiesta28 [93]
3 years ago
6

Assume that a parent company owns a 100% controlling interest in its long-held subsidiary. On December 31, 2013, a parent compan

y sold equipment to the subsidiary for $118,000. The equipment originally cost the parent $180,000, and accumulated depreciation through December 31, 2013 was $36,000. The parent depreciated the equipment for 10 years using the straight-line method and no salvage value. After the transfer, the subsidiary will depreciate the equipment for 8 years with no salvage value. Related to the transferred equipment, which of the following items is true regarding the preparation of the consolidated financial statements for the year ending December 31, 2013?A. The consolidation entries will include a $26,000 debit to "Equipment (gross)"B. The consolidation entries will include a $26,000 credit to "Loss on Sale of Equipment"C. The consolidation entries will include a $26,000 debit to "Gain on Sale of Equipment"D. The consolidation entries will include a $26,000 credit to "Accumulated depreciation"
Business
1 answer:
Vlad [161]3 years ago
5 0

Answer:

Related to the transferred equipment, the items that is true regarding the preparation of the consolidated financial statements for the year ending December 31, 2013 is:

C. The consolidation entries will include a $26,000 debit to "Gain on Sale of Equipment."

Explanation:

a) Data and Calculations:

Original cost of the equipment to the parent = $180,000

Transfer of equipment to subsidiary =                 (118,000)

Accumulated depreciation to December 31,        (36,000)

Unaccounted balance =                                          26,000

b) The unaccounted balance of $26,000 needs to be credited to the parent's Equipment account to remove it from the account.  This will have a corresponding debit entry in another account.  The only correct entry among the options is C.

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Answer:

Check the explanation

Explanation:

Net Present Value (NPV): It the distinction among the initial cash outflow and the present value of cash inflows. It assists in making project investment conclusion. A positive NPV means that the project should be accepted and if it is on negative swing then it should be rejected. Projects with upper NPV should be accepted in case of two mutually exclusive projects having positive net present value.

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3 years ago
Presented below is net asset information related to the Marin Division of Santana, Inc.MARIN DIVISIONNET ASSETSAS OF DECEMBER 31
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Answer:

The impairment loss of $161m is jounalized below:

Account Debit Credit

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Loss on impairment 161.00  

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Being impairment recorded  

The impairment test on Marin division of Santana that gave rise to impairment loss of $161 m found in the attached spreadsheet

Explanation:

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8 0
3 years ago
How do those who study workplace ergonomics help decrease workplace injury?.
vagabundo [1.1K]

Workplace injuries are used to prevent musculoskeletal problems at work. Ergonomics aids in the prevention of workplace injuries such as occupational diseases, accidents, mental stress, and major strains.

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7 0
2 years ago
Fixed expenses are $499,000 per month. The company is currently selling 5,000 units per month. The marketing manager would like
damaskus [11]

Answer:

decrease of $8,900

Explanation:

Use the following formula to calculate the net operating income

Net operating income = Sales - Variables cost - Fixed cost

At Current Sales Level

Sales = 5,000 x $160 = $800,000

Variable cost = 5,000 x $48 = $240,000

Fixed cost = $499,000

Placing values in the formula

Net Operaitng Income = $800,000 - $240,000 - $499,000 = $61,000

At Increased Sales level

Sales = 5,900 x ($160-$13) = $867,300

Variable cost = 5,900 x $48 = $283,200

Fixed cost = $532,000

Placing values in the formula

Net Operaitng Income = $867,300 - $283,200 - $532,000 = $52,100

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3 0
3 years ago
During its first year of operations, Silverman Company paid $11,625 for direct materials and $11,000 for production workers' wag
ella [17]

Answer:

$7,750

Explanation:

The computation of the net income for the first year is shown below:

but before that following calculations needed

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The Unit product cost is

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Now  

Cost of goods sold = Number of units sold × cost per unit

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= $20,250

And, finally

Net Income = Sales revenue - COGS - general, selling, and administrative expenses

= (4,500 units × $7) - $20,250 - $3,500

= $7,750

3 0
2 years ago
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