On January 1, 2014, Subsidiary Company purchased a delivery truck with an expected useful life of 5
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Question:
On January 1, 2014, Subsidiary Company purchased a delivery truck with an expected useful life of 5 years. On January 1, 2016, Subsidiary Company sold the truck to Parent Company and recorded the following entry: Dr. Cash 43,800 Dr. Accumulated depreciation 21,200 Cr. Truck 53,000 Cr. Gain on sale of truck 12,000 Parent holds 60% of Subsidiary's voting shares. Subsidiary reported net income of P55,000 and Parent reported separate net income of P98,000 for 2016. Parent Company continued the method used by Subsidiary Co. in recording the depreciation expense and the same remaining life. The consolidated net income for 2016
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