Pomeroy Corporation owns an 80% interest in Sherer Company and a 90% interest in Tampa Company. On

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Pomeroy Corporation owns an 80% interest in Sherer Company and a 90% interest in Tampa Company. On January 2, 2019, Tampa Company sold equipment with a book value of $600,000 to Sherer Company for $780,000. This equipment has a remaining useful life of three years. Sherer Company reported $100,000 and Tampa Company reported $150,000 in net income (including sales to affiliates) in 2019.


Required:

Prepare the 2019 and 2020 consolidated statements workpaper entries to eliminate the effects of this sale of equipment.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Advanced Accounting

ISBN: 978-1119373209

7th edition

Authors: Debra C. Jeter, Paul K. Chaney

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