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I need help in this question. Please do it correctly and 100%, i am stuck on this. 3 5 points Pam Corporation holds 70 percent
I need help in this question. Please do it correctly and 100%, i am stuck on this.
3 5 points Pam Corporation holds 70 percent ownership of Spray Enterprises. On December 31, 20X6, Spray paid Pam $34,000 for a truck that Pam had purchased for $39,000 on January 1, 20x2. The truck was considered to have a 15-year life from January 1, 20x2, and no residual value. Both companies depreciate equipment using the straight-line method. Required: a. Prepare the worksheet consolidation entry or entries needed on December 31, 20X6, to remove the effects of the Intercompany sale. (If no entry is required for a transaction/event, select "No journal entry required" In the first account fleld.) Answer is complete but not entirely correct. No Event Accounts Debit Credit 1 Gain on sale of truck 4,000 Truck 5.000 > Accumulated depreciation 9,000 b. Prepare the worksheet consolidation entry or entries needed on December 31, 20x7, to remove the effects of the Intercompany sale. (Do not round Intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" In the first account field.) Answer is complete but not entirely correct. No Event Accounts Debit Credit A 1 4,000 Investment in Spray Truck Accumulated depreciation 5.000 9,000 B 2 Accumulated depreciation 267 Depreciation expense 267Step by Step Solution
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