Sky Corporation owns 75 percent of Earth Company's stock. On July 1, 20X8, Sky sold a building to Earth for $33,000. Sky had purchased this building on January 1, 20X6, for $36,000. The building's original eight-year estimated total economic life remains unchanged. Both companies use straight-line depreciation. The equipment's residual value is considered negligible.

15.

Required information

Based on the information provided, in the preparation of the 20X8 consolidated financial statements, building will be _____ in the eliminating entries.

debited for $33,000

debited for $36,000

credited for $36,000

debited for $3,000

16.

Required information

Based on the information provided, the gain on sale of the building eliminated in the consolidated financial statements for 20X8 is:

$8,250.

$10,500.

$6,000.

$11,250.

17.

Required information

Based on the information provided, in the preparation of the 20X9 consolidated income statement, depreciation expense will be:

debited for $750 in the eliminating entries.

credited for $750 the eliminating entries.

credited for $1500 in the eliminating entries.

debited for $1500 in the eliminating entries.