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On January 2, 2013, Prembolt Corp sold equipment with a book value of $24,000 and a threeyear remaining useful life to its wholly owned subsidiary.

image text in transcribed On January 2, 2013, Prembolt Corp sold equipment with a book value of $24,000 and a threeyear remaining useful life to its wholly owned subsidiary. Sully Corporation, at a price $6,000 in excess of book value. What is the effect of the intercompany sale on Prembolt's income from Sully account for 2013 and its investment in Sully account on December 31, 2013

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