On January 1, 2000 the Homer Company acquired all of the stock of the Simpson Company at book value
Homer accounts for its investment in Simpson using the initial value (cost) method and Simpson Company doesn't pay any dividends
On January 1, 2015, the Simpson Company purchased a car for $80,000. Simpson believes the car will last 10 years and have no salvage value
Simpson uses straight-line depreciation for its assets
On January 1, 2019, the Simpson company sold the truck to Homer Company for a one-year 10% note ($60000) with interest and principal due 1/1/2020
Homer believes the truck will last 6 years and have no salvage value. Homer also uses straight-line depreciation for its assets
On January 1, 2021, Homer Company sold the truck to Krusty Company for $19,000 cash.
REQUIRED:
	A) Determine Simpson's annual depreciation on the truck
	B) make the journal entry Simpson makes when it sells the truck to Homer Company
	C) make the journal entry Homer makes when it buys the truck from Simpson Company
	D) determine Homer's annual depreciation on the truck
	E) make the necessary worksheet entries connected with the truck in 2019
	F) Unconsolidated Homer reported income of $900,000 and Simpson reported income of $100,000 what was consolidated income 2019?
	G) make the necessary worksheet entries connected with the truck in 2020
	H) Unconsolidated Homer reported income of $900,000 and Simpson reported income of $100,000 what was consolidated income 2020?
	I) make Homer's journal entry when it sells the truck to Krusty Company in 2021
	J) Make the necessary worksheet entries connected with the truck in 2021

REQUIRED:

A) Determine Simpson's annual depreciation on the truck

B) make the journal entry Simpson makes when it sells the truck to Homer Company

C) make the journal entry Homer makes when it buys the truck from Simpson Company

D) determine Homer's annual depreciation on the truck

E) make the necessary worksheet entries connected with the truck in 2019

F) Unconsolidated Homer reported income of $900,000 and Simpson reported income of $100,000 what was consolidated income 2019?

G) make the necessary worksheet entries connected with the truck in 2020

H) Unconsolidated Homer reported income of $900,000 and Simpson reported income of $100,000 what was consolidated income 2020?

I) make Homer's journal entry when it sells the truck to Krusty Company in 2021

J) Make the necessary worksheet entries connected with the truck in 2021

On January 1, 2000 the Homer Company acquired all of the stock of the Simpson Company at book value Homer accounts for its investment in Simpson using the intitial value (cost) method and Simpson Company doesn't pay any dividends On January 1, 2015 the Simpson Company purchased a car for $80,000. Simpson believes the car will last 10 vears and have no salvage value Simpson uses straight-line depreciation for its assets On January 1, 2019 the Simpson company sold the truck to Homer Company for a one-year 10% note ($60000) with interest and principal due 1/1/2020 Homer believes the truck will last 6 years and have no salvage value. Homer also uses straight-line depreciation for its assets On January 1, 2021 Homer Company sold the truck to Krusty Company for $19,000 cash. REQUIRED: A) Determine Simpson's annual depreciation on the truck B) make the journal entry Simpson makes when it sells the truck to Homer Company C) make the journal entry Homer makes when it buys the truck from Simpson Company D) determine Homer's annual depreciation on the truck E) make the necessary worksheet entries connected with the truck in 2019 F) Unconsolidated Homer reported income of $900,000 and Simpson reported income of $100,000 what was consolidated income 2019? G) make the necessary worksheet entries connected with the truck in 2020 H) Unconsolidated Homer reported income of $900,000 and Simpson reported income of $100,000 what was consolidated income 2020? 1) make Homer's journal entry when it sells the truck to Krusty Company in 2021 J) Make the necessary worksheet entries connected with the truck in 2021 On January 1, 2000 the Homer Company acquired all of the stock of the Simpson Company at book value Homer accounts for its investment in Simpson using the intitial value (cost) method and Simpson Company doesn't pay any dividends On January 1, 2015 the Simpson Company purchased a car for $80,000. Simpson believes the car will last 10 vears and have no salvage value Simpson uses straight-line depreciation for its assets On January 1, 2019 the Simpson company sold the truck to Homer Company for a one-year 10% note ($60000) with interest and principal due 1/1/2020 Homer believes the truck will last 6 years and have no salvage value. Homer also uses straight-line depreciation for its assets On January 1, 2021 Homer Company sold the truck to Krusty Company for $19,000 cash. REQUIRED: A) Determine Simpson's annual depreciation on the truck B) make the journal entry Simpson makes when it sells the truck to Homer Company C) make the journal entry Homer makes when it buys the truck from Simpson Company D) determine Homer's annual depreciation on the truck E) make the necessary worksheet entries connected with the truck in 2019 F) Unconsolidated Homer reported income of $900,000 and Simpson reported income of $100,000 what was consolidated income 2019? G) make the necessary worksheet entries connected with the truck in 2020 H) Unconsolidated Homer reported income of $900,000 and Simpson reported income of $100,000 what was consolidated income 2020? 1) make Homer's journal entry when it sells the truck to Krusty Company in 2021 J) Make the necessary worksheet entries connected with the truck in 2021