Exercise 6(LO 3) Resale of intercompany asset. Hilton Corporation sold a press to its 80%-owned...
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Exercise LO Resale of intercompany asset. Hilton Corporation sold a press to its owned subsidiary, Agri Fab Inc., for $ on January The press originally was purchased by Hilton on January for $ and $ of depreciation for had been recorded. The fair value of the press on January was $ Agri Fab proceeded to depreciate the press on a straight line basis, using a year life and no salvage value. On December Agri Fab having no further need for the machine, sold it for $ and recorded a loss on the sale. Explain the adjustments that would have to be made to the separate income statements of the two companies to arrive at the consolidated income statements for and
Exercise LO Resale of intercompany asset. Hilton Corporation sold a press to its owned subsidiary, Agri Fab Inc., for $ on January The press originally was purchased by Hilton on January for $ and $ of depreciation for had been recorded. The fair value of the press on January was $ Agri Fab proceeded to depreciate the press on a straight line basis, using a year life and no salvage value. On December Agri Fab having no further need for the machine, sold it for $ and recorded a loss on the sale. Explain the adjustments that would have to be made to the separate income statements of the two companies to arrive at the consolidated income statements for and
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