Question
In: Accounting
Grey Corp owns 71% of Blue Company. On January 1, 2017 Grey sold Blue a machine...
Grey Corp owns 71% of Blue Company. On January 1, 2017 Grey sold Blue a machine for $86,720. Immediately prior to the sale, the machine was recorded on Grey's books at a net book value of $20,088. Prior to the sale, Grey was depreciating the machine on a straight-line basis with 6 years of remaining life and no salvage value. Blue plans to adopt the same depreciation assumptions as Grey. What elimination adjustments with respect to this sale must be made to consolidated net income in 2018(ignoring income tax effects)?
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ekkarill92 answered 2 years agoRelated Solutions
Grey Corp owns 95% of Blue Company. On January 1, 2017 Grey sold Blue a machine...
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value. Blue plans to adopt the same depreciation assumptions as
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straight-line basis with 6 years of remaining life and no salvage
value. Blue plans to adopt the same depreciation assumptions as
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Grey Corp owns 100% of Blue Company. On January 1, 2017 Grey sold Blue a machine...
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Grey Corp owns 100% of Blue Company. On January 1, 2017 Grey sold Blue a machine...
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On January 1, Poe Corp. sold a machine for $4,798,243 to Saxe Corp., its wholly-owned subsidiary....
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Corp., its wholly-owned subsidiary. Poe paid $1.1 million for this
machine, which had accumulated depreciation of $250,000 on the sale
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On January 1, 2017, Beard Company purchased a machine for $800,000. The machine is expected to...
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A company bought a machine on January 1, 2017 for use in
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line method for 2017, 2018 and 2019. Compute the depreciation under
the units of production method for 2017, 2018 and 2019. Compute the
depreciation under the double declining...
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