In preparing its consolidated financial statements at December 31, 20X7, the following consolidation entries were included...

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In preparing its consolidated financial statements at December 31, 20X7, the following consolidation entries were included in the consolidation worksheet of Powder Corporation: Consolidation Worksheet Entries Buildings Gain on Sale of Building Debit 175,000 35,000 Credit 210,000 Accumulated Depreciation Consolidation Worksheet Entries: Debit Credit Accumulated Depreciation 2,500 Depreciation Expense 2,500 Powder owns 60 percent of Snow Corporation's voting common stock. On January 1, 20X7, Snow sold Powder a building it had purchased for $785,000 on January 1, 20X1, and depreciated on a 20-year straight-line basis. Powder recorded depreciation for 20X7 using straight-line depreciation and the same useful life and residual value as Snow. Required: a. What amount did Powder pay Snow for the building? Amount paid b. What amount of accumulated depreciation did Snow report at January 1, 20X7, prior to the sale? Accumulated depreciation In preparing its consolidated financial statements at December 31, 20X7, the following consolidation entries were included in the consolidation worksheet of Powder Corporation: Consolidation Worksheet Entries Buildings Gain on Sale of Building Debit 175,000 35,000 Credit 210,000 Accumulated Depreciation Consolidation Worksheet Entries: Debit Credit Accumulated Depreciation 2,500 Depreciation Expense 2,500 Powder owns 60 percent of Snow Corporation's voting common stock. On January 1, 20X7, Snow sold Powder a building it had purchased for $785,000 on January 1, 20X1, and depreciated on a 20-year straight-line basis. Powder recorded depreciation for 20X7 using straight-line depreciation and the same useful life and residual value as Snow. Required: a. What amount did Powder pay Snow for the building? Amount paid b. What amount of accumulated depreciation did Snow report at January 1, 20X7, prior to the sale? Accumulated depreciation