Depreciation expense on the consolidated income statement

Assignment Help Accounting Basics
Reference no: EM13145301

On January 1, 2011, Payton Co. sold equipment to its subsidiary, Starker Corp., for $115,000. The equipment had cost $125,000, and the balance in accumulated depreciation was $45,000. The equipment had an estimated remaining useful life of eight years and $0 salvage value. Both companies use straight-line depreciation. On their separate 2011 income statements, Payton & Starker reported depreciation expense of $84,000 and $60,000 respectively. The amount of depreciation expense on the consolidated income statement for 2011 would have been

A. $144,000

B. $148,375

C. $109,000

D. $134,000

E. $139,625

Reference no: EM13145301

Questions Cloud

How should a and b be chosen in order that y has same mean : Assume it is possible to adjust the scales in a linear manner to read Y = aX+b. How should a and b be chosen in order that Y has the same mean but fewer than 2% of the readings of Y exceed 4.2 gm.
What is the meaning of malt : what is the meaning of MALT,is it mucosa-associated lymphoid tissue,mean amylase/lipase turnover,mucosal absorbtion of lipids and triglycerides,marginally accetable lactose tolerance?
What happens to the components of water molecules : what happens to the components of water molecules that are split during the light reaction of photosynthesis?
Journal entries on books of salen company : Salen Company finances some of its current operations by assigning accounts receivable to a finance company. Make all the journal entries on the books of Salen Company that are involved in the transactions above.
Depreciation expense on the consolidated income statement : On their separate 2011 income statements, Payton & Starker reported depreciation expense of $84,000 and $60,000 respectively. The amount of depreciation expense on the consolidated income statement for 2011 would have been
Calculate the [oh-] : The [H3O+] is 1*10-6M in a solution. Calculate the [OH-]
What is the minimum rate that fresh air has to be supplied : what is the minimum rate that fresh air has to be supplied to the room so that the concentration of CO2 in the room doesn't exceed 0.500% by mole? Assume the room is well mixed, and the volume of the solid dry ice does not change. mol air/min
Calculate probability that an adult male weighs less : The weights of adult males is normally distributed with a mean of 200 pounds and a standard deviation of 40 pounds. Calculate the probability that an adult male weighs less than 130 pounds.
Describe the purpose of a flexible budget : Describe the purpose of a flexible budget. Suppose a manager claims flexible budgets are useful because costs are difficult to predict and flexibility is needed to change budgeted costs as input prices change. Do you agree?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Estimating materials price variance

A company has a standard cost system. In July the company purchased and used 22,500 pounds of direct material at an actual cost of $53,000; the materials quantity variance was $1,875 unfavourable; and the standard quantity of materials allowed for..

  Tax basis or at-risk amount

During the year, ABC LP generated a ($90,000) loss. How much of Sue's loss is disallowed due to her tax basis or at-risk amount?

  Resale of tax preparation and tax research

Silver Fox Corporation has been engaged in the resale of tax preparation and tax research-related books and software for several years.

  What was bob realized gain on the sale

Bob owns a rental property that he bought several years ago for $260,000. He has taken depreciation on the house of $37,000 since buying it. e sells it in 2011 for $290,000. His selling expenses were $12,000 for the year. What was Bob's realized g..

  Prepare a partial income statement

The company mostly sells on a retail basis to household consumers, but occasionally receives large orders for tables and chairs from schools and businesses.

  Basics of perpetual inventory system

You are at a company picnic and the company president starts a conversation with you. The president says, "Since we use the perpetual inventory system, there is no reason to take a physical count of our inventory." What is your response to the pre..

  Prepare pro forma consolidated worksheet

Prepare pro forma consolidated worksheet. Prepare a pro forma consolidation worksheet for Parent, Inc. and its proposed subsidiary as of December 31, 2009.

  Units of production and an estimated residual value

Al's Car Wash purchased a piece of equipment on October 1, 20x7, for $27,000. The equipment has an estimated life of four years or 40,000 units of production and an estimated residual value of $2,000.

  Determine heather agi

If Heather's AGI is $100,000 before considering the effects of the fire, determine her itemized deduction as a result of the fire. Also determine Heather's AGI.

  Discusses debits and credits

Define the terms debit and credit. Explain how debits and credits affect the following: assets, liabilities, owner's capital account, revenues and expenses.

  Cost of goods sold problem

It is estimates that 16% of the cost of goods sold represents fixed factory overhead costs and that 20% of the operating expenses are fixed. Since Royal Cola is only one of many products, the fixed costs will not be materially afected if the produ..

  Prepare a memo to susan apple

Prepare a memo to Susan Apple, a tax partner for whom you are working, with the recommended treatment for the disputed income.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd