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...
Grey Corp owns 95% of Blue Company. On January 1, 2017 Grey sold
Blue a machine for $64,963. Immediately prior to the sale, the
machine was recorded on Grey's books at a net book value of
$25,278. Prior to the sale, Grey was depreciating the machine on a
straight-line basis with 2 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...
Grey Corp owns 79% of Blue Company. On January 1, 2017 Grey sold Blue a machine...
Grey Corp owns 79% of Blue Company. On January 1, 2017 Grey sold
Blue a machine for $68,701. Immediately prior to the sale, the
machine was recorded on Grey's books at a net book value of
$26,705. 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...
Grey Corp owns 100% of Blue Company. On January 1, 2017 Grey sold Blue a machine...
Grey Corp owns 100% of Blue Company. On January 1, 2017 Grey
sold Blue a machine for $67,405. Immediately prior to the sale, the
machine was recorded on Grey's books at a net book value of
$21,511. Prior to the sale, Grey was depreciating the machine on a
straight-line basis with 5 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...
Grey Corp owns 100% of Blue Company. On January 1, 2017 Grey sold Blue a machine...
Grey Corp owns 100% of Blue Company. On January 1, 2017 Grey
sold Blue a machine for $64,192. Immediately prior to the sale, the
machine was recorded on Grey's books at a net book value of
$21,413. Prior to the sale, Grey was depreciating the machine on a
straight-line basis with 7 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...
Grey Corp owns 69% of Blue Company. On January 1, 2017 Grey sold Blue a machine...
Grey Corp owns 69% of Blue Company. On January 1, 2017 Grey sold
Blue a machine for $93,000. Immediately prior to the sale, the
machine was recorded on Grey's books at a net book value of
$23,000. Prior to the sale, Grey was depreciating the machine on a
straight-line basis with 4 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...
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
date. Poe estimated a $100,000 salvage value and depreciated the
machine on the straight-line basis over 20 years, a policy that
Saxe continued. In Poe's December 31 consolidated balance sheet,
the accumulated depreciation of this machine should be shown on the
consolidated balance sheet as:
On January 1, 2017, Marin Corp. sold an airplane with an estimated useful life of 10...
On January 1, 2017, Marin Corp. sold an airplane with an
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$497,200, the carrying amount $376,200, and the annual rental
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the sale should be reported at the end of 2017 in the financial
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The gain on...
Adelphi Company purchased a machine on January 1, 2017, for $90,000. The machine was estimated to...
Adelphi Company purchased a machine on January 1, 2017, for
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years with an estimated residual value of $5,000. Adelphi sold the
machine on January 1, 2021 for $30,000. Adelphi uses the double
declining method for depreciation. Using this information, how much
is the gain or (loss) for the equipment sale entry made on January
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On January 1, 2017, Beard Company purchased a machine for $800,000. The machine is expected to...
On January 1, 2017, Beard Company purchased a machine for
$800,000. The machine is expected to have a 10-year life and no
residual value. On January 1, 2017, it leased the machine to Ajax
Company for a three-year period at an annual rental of $200,000 to
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What's the initial value...
A company bought a machine on January 1, 2017 for use in operations. The machine cost...
A company bought a machine on January 1, 2017 for use in
operations. The machine cost $35,000 and the estimated residual
value was $3,000. The machine has useful life of 3 years and
produced 15,000 during 2017, 20,000 units during 2018 and 25,000
during 2019. Compute the depreciation expense under the straight
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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