.png”>E7-9 Transfer of Depreciable Asset at Beginning of Year
a.
Eliminate the gain on Truck & correct asset’s basis:
Gain on sale
Truck $
Accumulated Depreciation $
Accumulated Depreciation $
Depreciation Expense $
b.
Eliminate the gain on Truck & correct asset’s basis:
Investment in Minnow Corp. $
Truck $
Accumulated Depreciation $
Accumulated Depreciation $
Depreciation Expense
.png”>E7-8 Transfer of Depreciable Asset at Year-End
a.
Eliminate the gain on Truck & correct asset’s basis:
Gain on sale
Truck
$
Accumulated Depreciation
$
b.
Eliminate the gain on Truck & correct asset’s basis:
Investment in Minnow Corp.
$
Truck
$
Accumulated Depreciation
$
Accumulated Depreciation
$
Depreciation Expense
.png”>INSTRUCTION: You are to complete the assignment using the following template.
You need to fill in whatever is missing in order to complete the assignment. I have
includedsome check figures for you in order to help you.
E6-8 Inventory Transfer between Parent and Subsidiary
a.
Karlow Corporation reported cost of goods sold of:
Draw Company reported cost of goods sold of:
b.
Cost of goods sold for the consolidated entity is:
c.
Eliminating entry:
Sales
Cost of Goods Sold
$
Inventory
$
d.
Eliminating entry:
Investment in Draw Company
$
Cost of Goods Sold
$
e.
Eliminating entry:
Investment in Draw Company
$
NCI in NA of Draw Company
$
Cost of Goods Sold
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