Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. abc ltd. sells a machine to its 80% owned subsidia

ABC Ltd. sells a machine to its 80% owned subsidiary XYZ co on 1/1/2015. the...

90.2K

Verified Solution

Question

Accounting

ABC Ltd. sells a machine to its 80% owned subsidiary XYZ co on 1/1/2015. the original cost of the machine was $50,000 and at the date of transfer accumulated depreciation of $20,000. the transfer price was $40,000 and the machine had a remaining life of 5 years. ABC originally paid $400,000 for its 80% ownership in XYZ co on 1/1/2014 and any excess fair value was attributed to goodwill. XYZ posted net income of $30,000 and dividends of $10,000 in 2014 and net income of $60,000 and dividends of $30,000 in 2015. make the ta and ed entries for 2015 and *ta for 2016. also calculate the investment account balance at 12/31/2015. TA, ED, and *TA are the consolidating entries

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students