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Bonus Question (8 points) Parkerson, Inc. holds an 65% interest in voting common stock of Silverstone Company. The remaining 35% is held by unrelated
Bonus Question (8 points) Parkerson, Inc. holds an 65% interest in voting common stock of Silverstone Company. The remaining 35% is held by unrelated non-controlling investors. The two companies operate independently, except for an occasional intra-entity transfer. On 1/1/20x1, Parkerson transferred a building it acquired 2 years earlier to Silverstone Company for $250,000. The building has an estimated remaining useful life of 8-years with no salvage value. When they acquired the building, Parkerson paid $300,000 and assigned a 10-year useful life to it with no salvage value. Required In preparing their fiscal year-end 20x1 financial statements, how does the building transfer from Parkerson to Silverstone Company affect the computation consolidated net income, i.e., in consolidating Parkerson and Silverstone, what is the net adjustment to consolidated net income associated with this transaction.
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