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On January 1st 2000, Palpatine Company purchased all of the stock of Vadar Company at book value Palpatine Company uses the intial value method (cost) to account for its investment in Vadar and Vadar does not pay any dividends. On January 1st 2018, Palpatine Company purchased a truck for $250,000. This truck is expected to last 10 years with no salvage Palpatine uses straight line depreciation. On January 1st 2022, Palpatine sold the truck to Vadar Company for $180,000. Vadar gave Palpatine a 1 year 10% note with principal and interest payable on 1/1/2023. Vadar believes the truck will last 6 years with no salvage and Vadar also uses straight line depreciation. On January 1,2026 , Vadar sold the truck to Solo Company for $100,000 cash REQUIRED: 1) What is the annual depreciation Palpatine shows for this truck? 2) Make the journal entry Palpatine makes when it sells the truck to Vadar 3) Make the journal entry Vadar makes when it buys the truck from Palpatine 4) What is the annual depreciation Vadar shows for this truck? 5) Make the necessary worksheet entries for 2022 connected with the truck 6) in 2022, Palpatine shows (unconsolidated) income of $275,000 and Vadar shows income of $23,000 what is consolidated income? 7) Make the necessary worksheet entries for 2023 8 ) in 2023, Palpatine shows (unconsolidated) income of $275,000 and Vadar shows income of $23,000 what is consolidated income? 9) Make the journal entry Vadar makes when it sells the truck to Solo 10) make the necessary worksheet entries for 2026 11) in 2026, Palpatine shows (unconsolidated) income of $275,000 and Vadar shows income of $23,000 what is consolidated income

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