Padre holds 100 percent of the outstanding shares of Sonora. On January 1, 2011, Padre transferred equipment

Question:

Padre holds 100 percent of the outstanding shares of Sonora. On January 1, 2011, Padre transferred equipment to Sonora for $95,000. The equipment had cost $130,000 originally but had a $50,000 book value and five-year remaining life at the date of transfer. Depreciation expense is computed according to the straight-line method with no .
Consolidated for 2013 currently are being prepared. What worksheet entries are needed in connection with the consolidation of this asset? Assume that the parent applies the partial equity method.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...