Question
Spiniflex Pigeon Company owns 90% of the outstanding stock of Waterhole Corporation. This interest was purcahsed on January 1, 2016, when Waterhole's book values were
Spiniflex Pigeon Company owns 90% of the outstanding stock of Waterhole Corporation. This interest was purcahsed on January 1, 2016, when Waterhole's book values were equal to its fair values.
On jan1 2017, spiniflex pigeon sold a truck with a book value of 37,500 to waterhole corp for 40,000. the equipment was estimated to have a four year remiaining life on this date. all affiliates use the straight line depreciaiton method
Prepare all entries with respect to truck
1. record the journal entries on spinifllex pigeon's books for 2017
2. record the journal entries on waterhole's books for 2017
3. record the consolidation working paper elimination entries for the year ended dec 31, 2017
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