Falcon Corporation sold equipment to its 80%-owned subsidiary, Rodent Corp., on January 1, 2005. Falcon sold the equipment for $110,000 when its book value was $85,000 and it had a 5- year remaining useful life with no expected salvage value. Separate balance sheets for Falcon and Rodent included the following equipment and accumulated depreciation amounts on December 31, 2005: Falcon Rodent Equipment $ 750,000 $ 300,000 Less: Accumulated depreciation 200,000) Equipment-net $ 550,000 $ 250,000 Consolidated amounts for equipment and accumulated depreciation at December 31, 2005 were respectively ( 50,000)

Falcon Corporation sold equipment to its 80%-owned subsidiary, Rodent Corp., on January 1, 2005. Falcon sold the equipment for $110,000 when its book value was $85,000 and it had a 5- year remaining useful life with no expected salvage value. Separate balance sheets for Falcon and Rodent included the following equipment and accumulated depreciation amounts on December 31, 2005: Falcon Rodent Equipment $ 750,000 $ 300,000 Less: Accumulated depreciation 200,000) Equipment-net $ 550,000 $ 250,000 Consolidated amounts for equipment and accumulated depreciation at December 31, 2005 were respectively ( 50,000)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 3RE: Albany Corporation purchased equipment at the beginning of Year 1 for 75,000. The asset does not...

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