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On January 1, 2020, P Company purchaded equipment from its 80% owned subsidiary for $600,000. The carrying value of the equipment on the books of
On January 1, 2020, P Company purchaded equipment from its 80% owned subsidiary for $600,000. The carrying value of the equipment on the books of S Company was $450,000. The equipment had a remaining useful life of six years on January 1,2020. On January 1,2021, P Company sold the equipment to an outside party for $550,000. Prepare in general journal form the entries necessary in 2020 and 2021 on the books of P Company to account for the purchase and sale of the equipment.
Prepare in general journal form the entries necessary in 2020 and 2021 on the books of P Company to account for the purchase and sale of the equipment.
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Management And Organisational Behaviour
Authors: Laurie Mullins
7th Edition
9780273688761
