Question
Parent buys building on January 1, 2020 for $1,000,000 and has a useful life of 10 years. Straight line depreciation is used. On January 1,
Parent buys building on January 1, 2020 for $1,000,000 and has a useful life of 10 years. Straight line depreciation is used.
On January 1, 2020, parent sells building to 90% owned subsidiary for $1,200,000. Subsidiary also uses a remaining useful life of 10 years.
What is the amount of excess depreciation that must be reversed in worksheet entry ED (Dr. Accumulated Depreciation. Cr. Depreciation Expense)
| $100,000 | ||
| $90,000 | ||
| $20,000 | ||
| $120,000 | ||
| $18,000 |
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European Financial Reporting Adapting To A Changing World
Authors: J. Flower
2nd Edition
0333685180, 9780333685181
