aaaLtd acquires 100% interest in YYY Ltd. On 1 July 2022 aax Ltd sells an item of plant to YYYLtd for $145 000 when its carrying value in aaax Ltd's accounts was $101 250 (cost $168 750,accumulated depreciation $67 500). This plant is assessed as having a remaining useful life of 6years and the tax rate is 30%. Required: Provide consolidation journal entries for 30 June 2023 toadjust for the above sale. Please answer asap

3. Adjust the carrying value of the plant in aaX Ltd's accounts: Dr. Accumulated Depreciation…

Answered: aaa Ltd acquires 100% interest in YYY…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 11P

See similar textbooks

Similar questions

XXX Ltd acquires 100% interest in YYY Ltd. On 1 July 2022 XXX Ltd sells an item of plant to YYY Ltd for $145 000 when its carrying value in XXX Ltd’s accounts was $101 250 (cost $168 750, accumulated depreciation $67 500). This plant is assessed as having a remaining useful life of 6 years and the tax rate is 30%. Required: Provide consolidation journal entries for 30 June 2023 to adjust for the above sale.
XXX Ltd acquires 100% interest in YYY Ltd. On 1 July 2022 XXX Ltd sells an item of plant to YYY Ltd for $145 000 when its carrying value in XXX Ltd's accounts was $101 250 (cost $168 750, accumulated depreciation $67 500). This plant is assessed as having a remaining useful life of 6 years and the tax rate is 30%. Required: Provide consolidation journal entries for 30 June 2023 to adjust for the above sale. Please answer asap
Parent buys building (useful life 10 years) for $3,000,000 on January 1, 2020. On that same date, parent sells building to 80% owned subsidiary for $4,000,000. Subsidiary will use the same 10 year depreciable life. How much depreciation expense will the subsidiary record in 2020. How much is consolidated depreciation expense in 2020. 3. What two worksheet entries are required for year end 2020 (hint: entries TA and ED)
Parent buys building (useful life 10 years) for $3,000,000 on January 1, 2020. On that same date, the parent sells the building to an 80% owned subsidiary for $4.000,000. The subsidiary will use the same 10-year useful life. How much Depreciation Expense will the subsidiary record in 2020 How much is consolidated Depreciation expense in 2020 What two worksheet entries are required for year-end 2020 (hint: entries TA and ED)
Parent buys building (useful life 10 years) for $3,000,000 on January 1, 2020. On that same date, parent sells building to 80% owned subsidiary for $4,000,000. Subsidiary will use the same 10 year depreciable life. a)How much depreciation expense will the subsidiary record in 2020. b)How much is consolidated depreciation expense in 2020. c)What two worksheet entries are required for year end 2020 (hint: entries TA and ED) please show full explanations for a,b, and c
Wombat Ltd has acquired all the shares of Emu Ltd. During 2020-2021, the following transactions have occurred: Wombat Ltd acquired a motor vehicle from an external vendor for $35,000 on 1 July 2020, 20% depreciation p.a., and sells it to its subsidiary, Emu Ltd, for $32,000 on the same day. Emu Ltd charges 25% depreciation p.a. on the vehicle. Prepare the consolidation worksheet entries at 30 June 2021 (current year). Prepare the consolidation worksheet entries at 30 June 2022 (next year
On January 1, 2020, Parent Corporation purchased equipment from its 70% owned subsidiary for $360,000. The total useful life of the equipment was 15 years when Sub originally purchased it on January 1, 2015 for $450,000. Both Parent and Sub use straight- line depreciation. Required: a. Prepare the December 31, 2020 consolidation entry in general journal format. 5. Prepare the December 31, 2023 consolidation entry in general journal format. c. Repeat requirement (b), assuming instead that this had been a downstream sale.
in Reynolds buys building (10 year useful life) on January 1, 2019 for $1,000,000. Straight line depreciation is used. On the same day, Reynolds sells building to 90% owned subsidiary for $1,200,000. Subsidiary also uses a remaining useful life of 10 years. What is the appropriate worksheet entry for "excess depreciation" that must be prepared at December 31, 2019? shift O Dr. Depreciation Expense $120,000. Cr. Accumulated Depreciation $120,000 O Dr. Depreciation Expense $20,000. Cr. Accumulated Depreciation $20,000 tab O Dr. Accumulated Depreciation $20,000 Cr. Depreciation Expense $20,000 caps lock O Dr. Accumulated Depreciation $120,000. Cr. Depreciation Expense $120,000 esc 1 9,680 ! 1 Q A T control option Z 72 W S OCT 25 #3 X H command 80 F3 E D $ 4 с 160 000 000 F4 R tv F 175⁰ % F5 V T G
ABC Ltd acquires some machinery at a cost of $500 000 on 1 July 2021. On 30 June 2022, the machinery, which has an accumulated depreciation balance of $80 000, is assessed as having a fair value equal to $400 000. ABC Ltd measures machinery at fair value. Required: Provide the journal entries to reflect the revaluation decrement.
DEE Inc. purchased an equipment on March 31, 2019. The selling price of the asset is equal to its fair value at ₱1,400,000. The entity acquired the equipment by issuing 1,000 ₱1,000 8% bonds, currently quoted at 103. Provided that the entity is using the SYD method of depreciation, and the equipment’s useful life is five (5) years with a 10% residual value based on its cost, what is the carrying value of the equipment as of December 31, 2020? A. ₱ 535,600 B. ₱ 432,600 C. ₱ 659,200 D. ₱ 370,800
Ballet Pte Ltd acquired the following items of plant and Machinery, all from GST registered traders except paper shredder, which was purchased from a non registered trader for the quarter ended 31 March 2020. Description Cost (inclusive of 7% GST) Canon Printer $3,959 Paper Shredder $2,880 Boutique table $984.40 Machinery $11,877 Ballet Pte Ltd will claim its capital allowance to the maximum. Assuming the financial year ends on 30 June every year, determine the maximum capital allowance which can be claimed for the year of Assessment 2021 (to the nearest dollar). Assume paper shredder claimed by S19A, and Canon printer is not claimed under S19A. a. $6,567 b. $6,200 c. $4,967 d. $8,667
an entity acquired furniture and fittings on 1 July 2021 for $42 000. The estimated useful life of the furniture and fittings at acquisition date was 8 years and the residual value was $2000. The company sold all the furniture and fittings on 1 January 2027 for $18 000. The journal entry to reflect the sale is:

SEE MORE QUESTIONS

Recommended textbooks for you

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

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

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L

SWFT Comprehensive Volume 2019

Accounting

ISBN:

9780357233306

Author:

Maloney

Publisher:

Cengage

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

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

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L

SWFT Comprehensive Volume 2019

Accounting

ISBN:

9780357233306

Author:

Maloney

Publisher:

Cengage

SEE MORE TEXTBOOKS