Health, 17.07.2019 21:40 mommabear4887
On january 1, 2018, ackerman sold equipment to brannigan (a wholly owned subsidiary) for $200,000 in cash. the equipment had originally cost $180,000 but had a book value of only $110,000 when transferred. on that date, the equipment had a five-year remaining life. depreciation expense is computed using the straight-line method. ackerman reported $300,000 in net income in 2018 (not including any investment income) while brannigan reported $98,000. ackerman attributed any excess acquisition-date fair value to brannigan's unpatented technology, which was amortized at a rate of $4,000 per year.
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On january 1, 2018, ackerman sold equipment to brannigan (a wholly owned subsidiary) for $200,000 in...
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