Question
Parent company (P) transfers an item of plant to its subsidiary (S) for $6,000 at the start of 20X1. The plant originally cost P $10,000
Parent company (P) transfers an item of plant to its subsidiary (S) for $6,000 at the start of 20X1. The plant originally cost P $10,000 and had an original useful economic life of 5 years when purchased 3 years ago. The useful economic life of the asset has not changed as a result of the transfer.
Parent company (P) transfers an item of plant to its subsidiary (S) for $6,000 at the start of 20X1. The plant originally cost P $10,000 and had an original useful economic life of 5 years when purchased 3 years ago. The useful economic life of the asset has not changed as a result of the transfer.
What is the unrealized profit on the transaction at the end of the year of transfer (20X1)?
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Principles Of Project Finance
Authors: E. R. Yescombe
2nd Edition
0123910587, 9780123910585
