1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Complete each statement with the term that correctly defines.
Mashcka [7]

Answer:

a. Outperform.

b. Gatekeepers.

c. Leveraging.

d. Value creation.

e. Producer.

Explanation:

A platform can be defined as a type of business model that creates value or focuses on assisting participants by facilitating exchanges and interactions between two or more interdependent groups of participants, who are mostly consumers and producers of finished goods and services.

This simply means that, a platform usually creates an effective and efficient market or community network with needed resources, for better interaction and transaction among various participants. Some examples of a platform business are brainly, airbnb, apple, microsoft, uber etc.

The notable characteristics and advantages of a platform business are;

a. Platform businesses tend to frequently outperform pipeline businesses.

b. Platforms scale more efficiently than pipelines by eliminating gatekeepers.

c. Platform businesses leveraging digital technology can grow much faster.

d. Platforms unlock new sources of value creation and supply.

e. Feedback loops from consumers to the producers allow platforms to fine-tune their offerings and to benefit from big data analytics.

5 0
3 years ago
Accounting question, please help
dangina [55]

Answer:

Accrual basis.

Explanation:

The accrual basis of accounting refers to the accounting method where by revenues are recognized on the profit and loss statement when they are realized and not when the money is received.

8 0
3 years ago
MM Proposition I with corporate taxes states that:
OLEGan [10]

Answer:

d.) I and II

Explanation:

The first proposition can be regarded as proposition that gives a clam that capital structure of a company has no impact on the value. The value of a company is been known as present value of future cash flows when it's calculated, then it cannot be affected by capital structure. It should be noted that MM Proposition I with corporate taxes states that capital structure can affect firm value by an amount that is equal to the present value of the interest tax shield.

8 0
3 years ago
Question 7 (multiple choice)
Rufina [12.5K]
The answer is A. $297.99
367.99-45-25=$297.99
Hope this helps.
8 0
3 years ago
Read 2 more answers
Which of the following was not used in support of the continental drift hypothesis?
Wewaii [24]
Alfred Wegener was the scientist who proposed the Continental Drift Theory in the early twentieth century. Simply put, his hypothesis proposed that the continents had once been joined, and over time had drifted apart. I hope my answer has come to your help. God bless and have a nice day ahead!
3 0
3 years ago
Read 2 more answers
Other questions:
  • Which type of portfolio might a young investor who is not afraid of risk choose?
    9·2 answers
  • Trading one good or service for a good or service of equal value is called
    11·2 answers
  • We argued that when the economic growth in the US is greater than the (economic) growth rates of our trading partners, the trade
    14·1 answer
  • According to the "Marketing and Selling Travel: The customer," people travel for business, for meetings, conventions, and semina
    8·1 answer
  • Mr. Decker invested $20,000 in cash in his business.<br> How does the company record the investment?
    11·1 answer
  • When budgeting for your immediate needs you should divide them into what two categories of expenses
    8·1 answer
  • Suggest and explain four activities that would be ""customer focused"" in nature
    12·1 answer
  • Pine Street Inc. makes unfinished bookcases that it sells for $58. Production costs are $38 variable and $10 fixed. Because it h
    13·1 answer
  • Management estimates that 1% of the $100,000 of credit sales will be uncollectible. The Allowance for Doubtful Accounts has a $1
    9·1 answer
  • From the consumer’s perspective, the elements of an imc strategy can be viewed as being either.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!