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Required: Prepare elimination entries and complete the following worksheets PLEASE NOTE THAT THE FIRMS ARE USING A SEPARATE ACCUMULATED DEPRECIATION ACCOUNT!!!!!!!!!!! That will affect how

Required: Prepare elimination entries and complete the following worksheets
PLEASE NOTE THAT THE FIRMS ARE USING A SEPARATE ACCUMULATED DEPRECIATION ACCOUNT!!!!!!!!!!!
That will affect how the realization of the gain is recorded, and how the unrealized portion is carried forward to the following years!!!
Please note also that the number 13,200 shows up a few times; that's just a coincidence.
Questions:
20,000 What was the book value of the asset on the date of sale, 1/1/21?
30,000 What was the accumulated depreciation on the asset on the date of sale?
2021 2022 8,000 How much was the gain or loss on the intercompany sale?
Sales 100,000 80,000 180,000 Sales 110,000 85,000 195,000 Upstream Was the sale upstream or downstream?
Dep. Exp 15,000 10,000 2,000 (23,000) Dep. Exp 15,000 10,000 2,000 How much of the gain is realized/recognized each year?
Other Expenses 60,000 50,000 (110,000) Other Expenses 65,000 55,000 3,000 Value in cell E17
Gain/loss on sale of asset 3,000 3,000 0 Gain/loss on sale of asset 0 Value in cell E30
Investment income 12,300 12,300.0 0 Investment income 12,300 0 Value in cell E31
Net income 37,300 23,000 15,300.0 2,000 47,000 Net income 42,300 20,000 0 Value in cell F31
Income to NC Interest Income to NC Interest (23,000) Value in cell G15
Income to contolling interest Income to contolling interest 0 Value in cell G17
- Value in cell G20
Beg R/E 200,000 100,000 100,000 200,000 Beg R/E 207,300 103,000 0 Value in cell O30
Add: Income 37,300 23,000 60,300.0 Add: Income 42,300 20,000 0 Value in cell O31
Less: Dividends 30,000 20,000 20,000 30,000 Less: Dividends 20,000 10,000 0 Value in cell P31
Ending R/E 207,300 103,000 207,300.0 Ending R/E 229,600 113,000 - Value in cell Q17
- Value in cell Q20
Current assets 50,000 25,000 75,000 Current assets 50,000 55,000
Investment in Little 78,300 - Investment in Little 84,600
PPE 200,000 150,000 PPE 200,000 150,000
Acc Dep 45,000 40,000 Acc Dep 60,000 50,000
Liabilities 56,000 2,000 58,000 Liabilities 25,000 12,000
CS 20,000 30,000 50,000 CS 20,000 30,000
RE 207,300 103,000 310,300 RE 229,600 113,000
NC Interest NC Interest

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