Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can you help me answer these questions? 3) Company A and Company B are related companies subject to consolidation. On 1/1/2X, Company A sold machinery

Can you help me answer these questions?

image text in transcribed
3) Company A and Company B are related companies subject to consolidation. On 1/1/2X, Company A sold machinery to Company B for $200,000 cash that had an original purchase price of $150,000, useful life of 10 years, accumulated depreciation at the time of sale of $75,000, and was expected to be continued to be depreciated at $15,000 per year had it not been sold. Company B placed the machine in service on 1/1/2X, and is depreciating it over 4 years using straight-line depreciation. On consolidation... Will Machinery need to be adjusted with a debit or a credit? (select) Credit How much will Machinery need to be adjusted by? $ 50,000 Will Accumulated Depreciation need to be adjusted with a debit or a credit? (select) Credit How much will Accumulated Depreciation need to be adjusted by? $ 150,000 Will Depreciation Expense need to be adjusted with a debit or a credit? (select) How much will Depreciation Expense need to be adjusted by? Will a Gain or Loss on the sale need to be adjusted? (select) Will the gain or loss needed to be adjusted with a debit or a credit? (select) How much will the gain or loss need to be adjusted by? 4) Company A and Company B are related companies subject to consolidation. On 1/1/2X, Company A sold inventory to Company B for $200,000 cash that had a cost of $40,000 and Company B paid for it. Company B subsequently sold half that inventory during the year at a sales price of $250,000 to unrelated third parties. On consolidation... Will Sales need to be adjusted with a debit or a credit? (select) Debit How much will sales need to be adjusted by? Will Inventory need to be adjusted with a debit or a credit? (select) How much will Inventory need to be adjusted by? Will COGS need to be adjusted with a debit or a credit? (select) How much will COGS need to be adjusted by

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Advanced Accounting In Canada

Authors: Murray Hilton

6th Edition

0070001537, 978-0070001534

More Books

Students also viewed these Accounting questions

Question

What reward will you give yourself when you achieve this?

Answered: 1 week ago