In preparing its consolidated financial statements at December 31, 20X7, the following consolidation entries were included in the consolidation worksheet of Master Corporation Debit 175,000 35,000 Credit Consolidation Worksheet Entries Buildings Gain on Sale of Building Accumulated Depreciation 210,000 Debit 2,500 Credit Consolidation Worksheet Entries Accumulated Depreciation Depreciation Expense 2,500 Master owns 60 percent of Rakel Corporation's voting common stock. On January 1, 20X7, Rakel sold Master a building it had purchased for $745,000 on January 1, 20X1, and depreciated on a 20-year straight line basis. Master recorded depreciation for 20X7 using straight-line depreciation and the same useful life and residual value as Rakel Required a. What amount did Master pay Rakel for the building? paid b. What amount of accumulated depreciation did Rakel report at January 1, 20X7, prior to the sale? cumulated depreciation c. What annual depreciation expense did Rakel record prior to the sale? nual depreciation expense d. What expected residual value did Rakel use in computing its annual depreciation expense? Expected residual value e. What amount of depreciation expense did Master record in 20X7? Depreciation expense f. If Rakel reported net income of $75,000 for 20X7, what amount of income will be assigned to the noncontrolling interest in the consolidated income statement for 20x7? Income assigned to noncontrolling interest If Rakel reported net income of $65,000 for 20X8, what amount of income will be assigned to the g. noncontrolling interest in the consolidated income statement for 20X8? Income assigned to noncontrolling Interest References eBook & Resources