Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pepper owns since year 1 and always own that percent | 0 0,250 Use the following information to answer #49-#52: On January 1, Year 1,

image text in transcribed
Pepper owns since year 1 and always own that percent
| 0 0,250 Use the following information to answer #49-#52: On January 1, Year 1, Salt Corporation purchased a computer with an expected economic life of five years. On January 1, Year 3. Salt sold the computer to Pepper Inc. and recorded the following entry: Cash 39,000 Accumulated Depreciation 16,000 Computers 40,000 Gain on Sale 15,000 Pepper owns 60% of Salt's voting shares. In Year 3, Salt reported net income of $45,000, and Pepper reported income from its own operations of $85,000. There is no change in the estimated economic life of the equipment as a result of the intercorporate transfer. 49. In the eliminating entries column of the consolidation worksheet for Year 3. depreciation expense will be a. debited for $5,000. b. credited for $5.000. C. debited for $13,000. d. credited for $13,000. 50. In the eliminating entries column of the consolidation worksheet for Year 3. computers will be a. debited for $1,000. b. debited for $15,000. C. credited for $24,000. d. debited for $40,000. 51. Income assigned to NCI for Year 3 will be a. $12,000 b. $14,000 c. $18,000 d. $52,000 52. Consolidated net income for Year 3 will be a. $130,000 b. $120,000 c. $115,000 d. $106,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Alan Melville

2nd Edition

0273634399, 978-0273634393

More Books

Students also viewed these Accounting questions