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Hodge Co. holds 80 percent of the outstanding voting shares of Bison Co. On January 1, 2020, Hodge acquired a building with a 10 year
Hodge Co. holds 80 percent of the outstanding voting shares of Bison Co. On January 1, 2020, Hodge acquired a building with a 10 year remaining useful life and no salvage value for $450K. The building was to be depreciated on the straight-line basis. On January 1, 2022, Hodge sold this building to Bison for $412K. On this date (01/01/2022), the building had a remaining useful life of 8 years with no expected salvage value. What is the Excess Depreciation entry for this building for 2022 for consolidation purposes? General Journal Event Debit Credit A) Accumulated Depreciation Depreciation Expense 6,500 6,500 Accumulated Depreciation 5,200- Depreciation Expense 5,200 Depreciation Expense 6,500 Accumulated Depreciation 6,500 D) Depreciation Expense 5,200 Accumulated Depreciation 5,200 Accumulated Depreciation 45,000 Depreciation Expense 45,000
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