Transfer of Depreciable Asset at Beginning of Year

.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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