In preparing its consolidated financial statements at December
31, 20X7, the following consolidation entries were included in the
consolidation worksheet of Powder Corporation:
Consolidation Worksheet Entries
Debit
Credit
Buildings
140,000
Gain on Sale of Building
28,000
Accumulated Depreciation
168,000
Consolidation Worksheet Entries
Debit
Credit
Accumulated Depreciation
2,000
Depreciation Expense
2,000
Powder owns 60 percent of Snow Corporation’s voting common stock.
On January 1, 20X7, Snow sold Powder a building it had purchased
for $635,000 on January 1, 20X1, and depreciated...