Solution-What amount should be included in the consolidated

What amount should be included in the consolidated statement

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Question - On January 1, 2020, P Corporation sold equipment to S Company, its wholly owned subsidiary, for P680,000. P paid P1,000,000 for this equipment, for which the depreciation to the date of intercompany sale totaled P360,000. Both companies use the straight-line method of depreciation for their depreciable assets. The equipment had a 10-year life when purchased and an expected salvage value of P100,000.

What amount should be included in the consolidated statement of financial position at December 31, 2020, for the equipment cost and accumulated depreciation?

a) P1,000,000 and P360,000

b) P 680,000 and P450,000

c) P1,000,000 and P450,000

d) P 680,000 and P360,000

Reference no: EM133114481

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What amount should be included in the consolidated statement

Reference no: EM133114481

Reference no: EM133114481

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