What is the consolidated amount of machinery on December 31, 20x1? ans. 500,000 2. What is the consolidated amount of accumulated depreciation on December 31, 20x1? ans. 200,000 3. What is the amount of intercompany profit (loss) that must be deferred at December 31, 20x1? ans. 40,000 Please show me the solution to understand how they were able to derive those answers.
What is the consolidated amount of machinery on December 31, 20x1? ans. 500,000 2. What is the consolidated amount of accumulated depreciation on December 31, 20x1? ans. 200,000 3. What is the amount of intercompany profit (loss) that must be deferred at December 31, 20x1? ans. 40,000 Please show me the solution to understand how they were able to derive those answers.
Chapter8: Consolidated Tax Returns
Section: Chapter Questions
Problem 25CE
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On January 1, 20x1, C Corp. acquired 80% of the outstanding ordinary shares of S Inc. On January 5, 20x1, C sold machinery costing P600,000 to S Inc. for P550,000. The machinery has an original estimated useful life of 6 years and has a remaining useful life of five years on the date of sale.
1. What is the consolidated amount of machinery on December 31, 20x1? ans. 500,000
2. What is the consolidated amount of accumulated
3. What is the amount of intercompany
Please show me the solution to understand how they were able to derive those answers.
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