Answer:
the worksheet consolidation entry or entries needed on December 31, 20X6 would be the following:
Debit Credit
Gain on Sale $7,000
truck $5,000
Accumulated Depreciation $12,000
Explanation:
In order to prepare the worksheet consolidation entry or entries needed on December 31, 20X6, to remove the effects of the intercompany sale we would have to make first the following calculations:
Gain on Sale=$31,000-($36,000-(($36,000/15)×5))
=$7,000
Accumulated Depreciation=($36,000/15)×5
=$12,000
Hence, truck=$12,000-$7,000
=$5,000
Therefore, the worksheet consolidation entry or entries needed on December 31, 20X6 would be the following:
Debit Credit
Gain on Sale $7,000
truck $5,000
Accumulated Depreciation $12,000
