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Accounting homework help. On January 1, 2002 Potter Company purchased all of the...

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Accounting

Accounting homework help.

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On January 1, 2002 Potter Company purchased all of the stock in Voldomort Company at book value. Potter accounts for this investment using the initial value method and Voldomort Company does not pay any dividends. On January 1, 2010 Potter purchased a truck for $130,000. The truck is expected to last 10 years and have no salvage. Potter uses straight line depreciation. On January 1, 2014 Potter sold the truck to Voldomort for $78,000. Voldomort believes the truck will last 6 years and with no salvage Voldomort purchased the truck for cash The 2014 income statements of Potter and Voldomort are Potter Voldomort 300,000 60000 revenue depreciation expense gain/loss on sale truck 0 ncome A) MAKE THE ENTRY POTTER MAKES WHEN IT SELLS THE TRUCK TO VOLDOMORT B) DETERMINE VOLDOMORTS DEPRECIATION EXPENSE IN 2014 C) DETERMINE CONSOLIDATED INCOME FOR 2014 D) MAKE THE NECESSARY WORKSHEET ENTRIES NEEDED IN CONNECTION WITH THIS TRUCK IN 2014 REQUIRED On January 1, 2017 Voldomort sold the truck to Weasley Company for $32000 Potter Voldomort 300,000 0 revenue 60000 gain/loss on sale truck income

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