Amount of accumulated depreciation

Assignment Help Accounting Basics

Reference no: EM13124333

Mortar Corporation acquired 80 percent of Granite Corporation's voting common stock on January 1, 2007. On December 31, 2008, Mortar received $390,000 from Granite for a equipment Mortar had purchased on January 1, 2005, for $400,000. The equipment is expected to have a 10-year useful life and no salvage value. Both companies depreciate equipments on a straight-line basis.

Required:

Based on the preceding information:

A) Calculate the amount to be debited or credited for equipment during the preparation of the 2008 consolidated financial statements.

B) Calculate the amount to be debited or credited for depreciation expense to be shown in the preparation of the 2009 consolidated income statements

C) Calculate the amount of accumulated depreciation to be debited or credited in the preparation of the 2009 consolidated balance sheet.

Reference no: EM13124333

Questions Cloud

Description of fermat little theorem : Please DO NOT USE Euler's function. You can only use Fermat's Little theorem if needed.

What are the total fixed costs : Smith Company's break-even point is 12,200 units. Each unit generates variable costs of $2.20 and is sold for $4.90. What are the total fixed costs?

James loewen : Consider Freire's ideas alongside those of James Loewen, both of whom write about educational best practices from different perspectives. You will synthesize their ideas, teaching your readers what you find most significant. This will require you to ..

Determine the sources to search : Your write-up should be concise enough to allow me to see the answer without having to search but complete enough that I know you did the steps. Step One is important; if you skip ahead to Step Three it will show in your write-up.

Amount of accumulated depreciation : Calculate the amount of accumulated depreciation to be debited or credited in the preparation of the 2009 consolidated balance sheet.

Use of linear kinematic equations : Two trains are driving towards each other .One at 144 km/h and the other at 72 km/h When they see each other they start to brake at 1 m/ss. There is 950m between them

Solving for systems of linear equations : Create a system of linear equations from my own life. Keep in mind that a system of linear equations will consist of two equations using the same variables and the variables will represent the same thing for both equations

Illustrate what is the probable type of behavior that each : Illustrate what is the probable type of behavior that each of the costs exhibits? The company expects to produce 10,000 caps this month. Would you expect each type of cost to increase or decrease? Why? Can the total cost of 10,000 caps be determi..

Fundamental groups of moebius strip and cylinder : If G acts on X, pi1(X) = {e}, and for all x elements of X there exists Ux neighborhood of X such that Ux intersection g(Ux) = empty set for all g elements of G{e}, then pi1(XG) is homeomorphic to G.

User Account

All Pages