Blank Corporation owns 60 percent of the voting common stock of Grand Corporation. On December 31, 20X4, Blank paid Grand \(\$ 276,000\) for dump trucks purchased by Grand on January \(1,20 \times 2\). Both companies use straight-line depreciation. The eliminating entry included in preparing consolidated financial statements at December 31, 20X4, was:

\section*{Required}

a. What amount was paid by Grand to purchase the trucks on January 1, 20X2?

b. What was the economic life of the trucks on January 1, 20X2?

c. Give the workpaper eliminating entry needed in preparing the consolidated financial statements at December 31, 20X5.

Transcribed Image Text:

Trucks 24,000 Gain on Sale of Trucks 36,000 Accumulated Depreciation 60,000