Aztec, the parent, sells its 90 percent subsidiary, Navajo, equipment for $36,000 on May 1, 2005. At that date, the equipment has a cost and accumulated depreciation on Aztec's financial records of S60,000 and $31,200, respectively. The equipment had a remaining life of four years on Aztec's books and was assigned a life of six years by Navajo. What is the worksheet elimination to the equipment account if consolidated financial statements are prepared on December 31, 2005? S21,600 credit $21,600 debit $24,000 credit a. b. C. d. S24.000 debit

Aztec, the parent, sells its 90 percent subsidiary, Navajo, equipment for $36,000 on May 1, 2005. At that date, the equipment has a cost and accumulated depreciation on Aztec's financial records of S60,000 and $31,200, respectively. The equipment had a remaining life of four years on Aztec's books and was assigned a life of six years by Navajo. What is the worksheet elimination to the equipment account if consolidated financial statements are prepared on December 31, 2005? S21,600 credit $21,600 debit $24,000 credit a. b. C. d. S24.000 debit

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 62P

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