Punn Corporation owns all the common stock of Prey Inc. On January 2, 2010, Punn sells a

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Punn Corporation owns all the common stock of Prey Inc. On January 2, 2010, Punn sells a machine with a book value of \($30,000\) to Prey for \($40,000.\) Prey uses straight-line depreciation and intends to use the machine for five years. The adjustments (net) needed to compute the consolidated net income (before tax) for the years 2010 and 2011 are:

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Advanced Accounting

ISBN: 12

5th Edition

Authors: Debra C Jeter, Paul K Chaney

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