Reference no: EM131881840
Assignment
On 1/1/2009 the Yoda Company purchased all of the stock in the First Order company at book value.
Yoda accounts for its investment in the First Order using the initial value method and the First Order doesn't pay any dividends.
On 1/1/2011 Yoda Company purchased a truck for $80,000 this truck is expected to last 12 years
and have a $2,000 salvage value. Straight line depreciaton is used.
On 1/1/2014 the Yoda Co. sold the truck to the First Order Company for $75,000. The First Order believes the truck will last 9 years and have a $3,000 salvage value. the First Order also uses straight line depreciation.
the First Order give Yoda a 1 year 5% note with principle and interest due 1/1/2015
1/1/2015 the First Order paid off the note and interest
on 1/1/2018 the First Order sold the truck to the OBI-WON Company for $55,000
unconsolidated income for Yoda and the First Order were as follows:
Yoda First Order
2014 350000 43000
2015 415000 45000
2016 379000 48000
2017 399000 43000
2018 411000 55000
Required:
1. determine Yoda's annual depreciation expense for this truck
2. make the journal entry Yoda makes when it sells the truck to First Order
3. make the jorunal entry the First Order makes when it buys truck from Yoda
4. determine First Order's annual depreciation expense for this truck
5. make the necessary worksheet entries needed 12/31/14 connected with this truck
6. determine 2014 consolidated income
7. make the necessary worksheet entries needed 12/31/15 connected with this truck
8. determine 2015 consolidated income
9. determine 2016 consolidated income
10. determine 2017 consolidated income
11. make the journal entry the First Order makes when it sells the truck in 2018
12. make the necessary worksheet entries needed 12/31/18 connected with this truck
13. determine 2018 consolidated income
please show works and completed answers