Amount of gain-straight line method

Reference no: EM13159258

In January 2008, S Company, an 80% owned subsidiary of P Company, sold equipment to P Company for $1,980,000. S Company's original cost for this equipment was $2,000,000 and had accumulated depreciation of $200,000. P Company continued to depreciate the equipment over its 9 year remaining life using the straight-line method. This equipment was sold to a third party on January 1, 2011 for $1,440,000. What amount of gain should P Company record on its books in 2011?

a) $60,000.

b) $120,000.

c) $240,000.

d) $360,000.

Reference no: EM13159258

Questions Cloud

Upstream intercompany sale of nondepreciable assets : In years subsequent to the upstream intercompany sale of nondepreciable assets, the necessary consolidated workpaper entry under the cost method is to debit the:

Calculate the number of moles of solute : Calculate the number of moles of solute present in each of the following solutions: a)245 mL of 1.50 M HNO3 b) 50.0 mg of an aqueous solution tha tis 1.25 m NaCl c) 75.0 g of an aqueous solution that is 1.50% sucrose by mass

Higher ed executives often employ faculty in problem : Higher ed executives in problem solving and decision making instead of using usual chain of commands through the administration. Why do you think this happens? Is it a good idea? Please explain.

Compute and use standard deviations from the samples : state the hypotheses and identify the claim. compute the test value At a = 0.05, decide if there is enough evidence to reject the claim of no difference in the ages fo the two groups. Compute and use the standard deviations from the samples.

Amount of gain-straight line method : P Company continued to depreciate the equipment over its 9 year remaining life using the straight-line method. This equipment was sold to a third party on January 1, 2011 for $1,440,000. What amount of gain should P Company record on its books in ..

Offset of volcanic formation : Measure the offset of this volcanic formation using the map and distance scale in Figure 3. Then calculate an estimated average annual rate of movement in centimeters per year along the San Andreas Fault

What is the pressure in the container : If 2.61 g of methane gas (CH4) is introduced into an evacuated 1.67 L container at 15°C, what is the pressure in the container?

Prompts the user to enter an integer : Write the code that prompts the user to enter an integer between 1 and 20 (including 1 and 20), reads the value using cin, and then prints the value that they entered in a statement that begins with "You entered a ". Save this version in a separate l..

Does confidence interval interpretation agree with results : Find the 90% confidence interval fo the mean. Does the confidence interval interpretation agree with the hypothesis testing results? Explain.

User Account

All Pages