Preparing the [I] consolidation journal entries for sale of depreciable assets - Equity method

Assume that on January 1, 2014, a wholly owned subsidiary sells to its parent, for a sale price of $115,000, equipment that originally cost $150,000. The subsidiary originally purchased the equipment on January 1, 2010, and depreciated the equipment assuming a 12-year useful life (straight-line with no salvage value). The parent has adopted the subsidiarys 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.

c. Prepare the required Cll consolidation journal entry in 2014 (assume a full year of depreciation). Consolidation Worksheet Debit Credit Description ulgain] Equipment uldepl