On January 1, 2019 Pink Corp. sold a machine for $7,400 to slink Corp., its wholly-owned subsidiary. Pink paid $13,00 for this machine.  On January 1, 2019, accumulated depreciation was $4,500.  The remaining useful life is assumed to be 5 years. Straight line depreciation is used by both companies.    In pink's December 31, 2019 consolidated balance sheet, at what amount should accumulated depreciation be reported?

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
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Problem 8MC: On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was...
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On January 1, 2019 Pink Corp. sold a machine for $7,400 to slink Corp., its wholly-owned subsidiary. Pink paid $13,00 for this machine.  On January 1, 2019, accumulated depreciation was $4,500.  The remaining useful life is assumed to be 5 years. Straight line depreciation is used by both companies. 

 

In pink's December 31, 2019 consolidated balance sheet, at what amount should accumulated depreciation be reported?

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