Reflecting the purchase of the wood chipper

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Reference no: EM1375395

Sapling, Inc. is a 95 percent-owned subsidiary of Fir Enterprises. Fir Enterprises sells Sapling an industrial wood chipper for $10,000 on 1st January, 2008. Fir Enterprises paid $17,000 for the wood chipper and the asset currently has a book value of $8,000. The asset has a remaining useful life of 4 years, with no salvage value.

Give Sapling's entries reflecting the purchase of the wood chipper.

Give Fir's entries reflecting the sale of the wood chipper.

Give the consolidating worksheet adjusting entries that must be made in 2008.

Give the consolidating worksheet adjusting entries for 20x9 that deal with impact of annual depreciation that occurs on purchasing subsidiary's books.

Reference no: EM1375395

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