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