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T Pizzeria bought 80% of the outstanding shares owned by its supplier, PT Sizzleria. At the time of acquisition, Sizzleria's book value was equal to its fair value. Pizzeria sold a production machine on January 2, 2013 to Sizzleria for IDR 100,000,000. The machine has a book value of Rp90,000,000 with an initial cost of Rp120,000,000. The economic life of the machine is still 10 years and is not estimated to have a residual value. Both Pizzeria and Sizzleria record depreciation using the straight-line method. At the end of 2013, Sizzleria announced a net profit of Rp80,000,000 Problem 1: What is the...
a. Journals recorded in the book Pizzeria and Sizzleria in 2013:
b. Eliminating/adjusting journal entries in the consolidated worksheet at the end of 2013.c. Eliminating/adjusting journal entries in the consolidated worksheet at the end of 2014.
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