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I need the solution and the answer of this question. I am in a hurry, so quick response will be appreciated. Thank you! Python owns
I need the solution and the answer of this question. I am in a hurry, so quick response will be appreciated. Thank you!
Python owns 75% of Snake, and Boa is an unrelated third party. Tax rates are: Snake = 25%, Python = 35%, Boa = 45%. Determine the necessary elimination entries to account for the following inter- company transactions for the preparation of Python's consolidated financial statements for the year ended December 31, 2021. Snake purchased some boot making machinery from Boa Corp. on January 1, 2020 for $400,000 at which time the machinery had an estimated useful life of 9 years. Later that same day, Snake Co. sold the machinery to Python Co. for $630,000. There has been no change in the estimated useful life since that time. Snake, Python and Boa all use straight-line amortization to depreciate their capital assets and all report their capital assets net of accumulated amortization. Determine the elimination entries necessary for the year ended December 31, 2021Step by Step Solution
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