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Preparing the []] consolidation journal entries for sale of depreciable assets - Equity method line with no salvage value). The parent has adopted the subsidiary's
Preparing the []] consolidation journal entries for sale of depreciable assets - Equity method line with no salvage value). The parent has adopted the subsidiary's depreciation policy and depreciates the equipment over the remaining useful life of 8 years. The parent uses the equity method to account for its Equity Investment. a. Compute the annual pre-consolidation depreciation expense for the subsidiary (pre-intercompany sale) and the parent (post-intercompany sale). b. Compute the pre-consolidation Gain on Sale recognized by the subsidiary during 2020. c. Prepare the required [l] consolidation journal entry in 2020 (assume a full year of depreciation)
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