Find what worksheet entries are needed in connection

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Padre holds 100 percent of the outstanding shares of Sonora. On January 1, 2019, Padre transferred equipment to Sonora for $92,000. The equipment had cost $137,000 originally but had a $47,000 book value and five-year remaining life at the date of transfer. Depreciation expense is computed according to the straight-line method with no salvage value.

  • Consolidated financial statements for 2021 currently are being prepared.

Problem 1: What worksheet entries are needed in connection with the consolidation of this asset? Assume that the parent applies the partial equity method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Reference no: EM132961649

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