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advanced mod question5




Question;Assume that Parent Company decides;to sell Equipment (Cost = $10,000, Accumlated Depreciation = $1,000) to Sub for;$20,000 cash. Show the sale and the subsequent elimination entries by Parent;Company Parent Company Balance Sheet Sale by Parent Assets, Liabilities;Equities Book Value Account DR CR Cash $ 1,500,000 AR $ 10,000 Inventory $200,000;Land $ 640,000 Equipment $400,000 Accumulated Depreciation -$150,000 Acquisition;by Sub Patent $0 Account DR CR Total Assets $2,600,000 AP $100,000 Common Stock;$450,000 Additional Paid In Capital $600,000 Retained Earnings $1,450,000;Elimination Entries by Parent Total Liabilities & Equity $2,600,000 Account;DR CR Sub Company Balance Sheet Assets, Liabilities & Equities Book Value;Cash $35,000 AR $10,000 Inventory $65,000 Land $40,000 PP&E $400,000;Accumulated Depreciation -$150,000 Patent $0 Total Assets $400,000 AP $100,000;Common Stock $100,000 Additional Paid In Capital $50,000 Retained Earnings;$150,000 Total Liabilities & Equity $400,000 Assume that book Value = Fair;Value Clearly identify the requirements being addressed. Show all calculations;within the cells of an Excel spreadsheet. This means that you must use formulas;and links so that the thought process can be examined. Make good use of;comments to convey your thought process as well. No hard coding of solutions.;Submit a single MS Excel file for grading.VIEW FILE ATTACHED BELOW


Paper#52984 | Written in 18-Jul-2015

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