Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hi , I don't understand how to do this accounting question. Please help. On 1 July 2 0 1 8 , the subsidiary sold a

Hi, I don't understand how to do this accounting question. Please help.
On 1 July 2018, the subsidiary sold a building to the parent for $180000 in cash. This item had an original cost of $720000 and accumulated depreciation at time of sale to the subsidiary of $360000. The remaining useful life of that building is estimated to be 20 years and the future economic benefits are assumed to be derived consistently throughout the life. The building was sold to external entities on 1 April 2020 for $250000. Assume an income tax rate of 30%. Prepare the consolidation worksheet adjusting entries for preparation of the consolidated financial statements as at 30 June 2020
Note: Enter your answers to the nearest dollar.
image text in transcribed

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

Auditing Assurance Services and Ethics in Australia an Integrated Approach

Authors: Alvin A Arens, Peter J. Best, Greg Shailer, Brenton Fiedler

9th edition

978-1442539365, 1442539364

More Books

Students also viewed these Accounting questions

Question

=+6. What need does it fulfill?

Answered: 1 week ago

Question

=+8. How can you differentiate your product in their eyes?

Answered: 1 week ago