INTRA-ENTITY DEPRECIABLE ASSET TRANSFER

Pit Corporation owns 70% of Stop Companys outstanding common stock. On 01/01/20, Pit sold a used piece of equipment to Stop in exchange for

$119,000 cash. Pits original cost of the equipment was $787,000 and accumulated depreciation at 01/01/20 was $623,000. The remaining useful

life of the equipment is 10 years, and Stop will use that same useful life. Both companies use the straight-line method of depreciation.

Requirement: Prepare the 12/31/20 consolidation worksheet entry related to these transactions. Use the templates provided below and please show the calculations

ADJUSTMENT WE HAVE: Combined G/L Bals WE NEED: Consolidated Amounts Account P's G/L S's G/L WHICH LEADS TO...... WE HAVE: Combined G/L Bals Consolidation Entries debit credit WE NEED: Consolidated Amounts Account P's G/L S's G/L CALCULATIONS