Answered step by step
Verified Expert Solution
Question
1 Approved Answer
What is the biggest reason the consolidating entries for intra - entity transfers of depreciable assets differ from those for intra - entity transfers of
What is the biggest reason the consolidating entries for intraentity transfers of depreciable assets differ from those for intraentity transfers of land?
Accumulated depreciation for the land account is credited directly into the asset account land rather than in a separate contra account
Land tends to depreciate at a fast rate than other types of PP&E
Transferred depreciable assets require updating annual depreciation expense and accumulated depreciation each year.
Transferred depreciable assets results in revenue and COGS, whereas transfers of land result in gains and losses
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started