Solution-What is the amount of the adjustment to

What is the amount of the adjustment to depreciation expense

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Reference no: EM133076743

Question - On 1/2/x6, Palex sold equipment costing P100,000 to its 100%-owned subsidiary, Salex, for P75,000. At the time of the sale, the equipment had been 60% depreciated (using the straight-line method and an assigned life of 10 years). Salex continued depreciating the equipment by using the straight-line method but assigned a remaining life of 5 years.

Required -

1. What are the cost and accumulated depreciation, respectively, of this equipment in the 12/31/x6 consolidated balance sheet?

2. What is the amount of the intercompany profit or loss that must be deferred at 12/31/x6?

3. What is the amount of the adjustment to Depreciation Expense (debit or credit) in preparing the consolidation worksheet at 12/31/x6?

Reference no: EM133076743

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What is the amount of the adjustment to depreciation expense

Reference no: EM133076743

Reference no: EM133076743

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