Wildhorse Corp. owns 75% of Swifty Inc. Both companies are in the mining industry. During 2020, Wildhorse Corp. purchased a building from Swifty Inc. for $1,850. The buildings original cost is $25,000 and its carrying amount in Swifty Inc.s financial statements is $1,300. Wildhorses Contributed Surplus account contains a credit balance of $340 from previous related-party transactions. Swiftys Contributed Surplus account is nil. There is no available independent evidence of the value of the building because it is a unique building in a remote part of the country. Wildhorse subsequently sold the building, during 2021, to an unrelated party for $2,080. Both Wildhorse and Swifty follow ASPE. Using the related-party decision tree answer the following.

How would both Wildhorse and Swifty record the purchase and sale of the building during 2020? (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Wildhorse Corp.:

Account Titles and Explanation	Debit	Credit
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount

Swifty Inc.:

Account Titles and Explanation	Debit	Credit
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount

eTextbook and Media

List of Accounts

Record the subsequent sale of the building by Wildhorse during 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount

eTextbook and Media

List of Accounts

Assume that the transaction is in the normal course of operations for both Wildhorse and Swifty and that it has commercial substance. Record the journal entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Wildhorse Corp.:

Account Titles and Explanation	Debit	Credit
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount

Swifty Inc.:

Account Titles and Explanation	Debit	Credit
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount

Wildhorse Corp.

Account Titles and Explanation	Debit	Credit
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount

eTextbook and Media

List of Accounts

Calculate the total impact on income of the purchase and sale of the building for 2020 and 2021 for the consolidated reporting unit of the two companies. What can you conclude from your calculation?

Total income for 2020 and 2021 will select an option decreaseincrease by $enter a dollar amount