On January 1, 20X1, Company P sold a machine to its 70%-owned subsidiary, Company S, for $60,000.
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On January 1, 20X1, Company P sold a machine to its 70%-owned subsidiary, Company S, for $60,000. The book value of the machine was $40,000. The machine was depreciated straight-line, over 5 years. On December 31, 20X3, Company S sold the machine to a nonaffiliated firm for $35,000. On the consolidated statements, how much gain or loss on the intercompany machine sale should be recognized in 20X1, 20X2, and 20X3?
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Related Book For 
Advanced Accounting
ISBN: 9780470087367
9th Edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
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