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Business, 23.12.2019 23:31 annapittbull12
Pcompany owns 65% of the outstanding common stock of s company. on september 30, 2011, s company sold equipment to p company for $300,000. the equipment cost s company $1,000,000 and had accumulated depreciation of $500,000 on the date of the sale. the management of p company estimated that the equipment had a remaining useful life of four years from september 30, 2011. s also estimated the same useful life left at time of sale of equip, ent. to solve: prepare all journal entries for p and s (from initial purchase of equipment from 3rd parties, depreciation from initial purchase to sale between the related parties) on sep. 30, 2011. in addition, prepare the w/p entry to eliminate the intercompany sale of equipment as of sep. 30, 2011. finally, prepare the adjustment to depreciation on dec. 31, 2011.
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Pcompany owns 65% of the outstanding common stock of s company. on september 30, 2011, s company sol...
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