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If Company A and Company B are related companies subject to consolidation. During the year, Company A sold office equipment to Company B for $50,000 on a note receivable / payable that had an original purchase price of $60,000 and accumulated depreciation at the time of sale of $50,000.
Question 1: The portion of the elimination entry at the time of consolidation to reverse out the gain or loss booked on this transaction would be a Debt gain on sale $10,000?
Question 2: Would the consolidation result in a debt gain on sale of $10,000?
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