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Padre holds 1 0 0 percent of the outstanding shares of Sonora. On January 1 , 2 0 2 2 , Padre transferred equipment to
Padre holds percent of the outstanding shares of Sonora. On January Padre transferred equipment to Sonora for $ The equipment had cost $ originally but had a $ book value and fiveyear remaining life at the date of transfer. Depreciation expense is computed according to the straightline method with no salvage value.
Consolidated financial statements for currently are being prepared.
Required:
What worksheet entries are needed in connection with the consolidation of this asset? Assume that the parent applies the partial equity method.
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