Create eliminations for consolidation due transaction

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Reference no: EM13142977

On January 1, 2006, Payton Co. sold equipment to its subsidiary, Starker Corp., for $115,000. The equipment had cost $125,000, and the balance in accumulated depreciation was $45,000. The equipment had an estimated remaining useful life of eight years and $0 salvage value. Both companies use straight-line depreciation. On their separate 2006 income statements, Payton and Starker reported depreciation expense of $84,000 and $60,000, respectively.

A. Create the eliminations for consolidation due to the following transaction for 2006 and 2009.

Reference no: EM13142977

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