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Sapling, Inc. is a 95%-owned subsidiary of Fir Enterprises. Fir Enterprises sells Sapling an industrial wood chipper for $10,000 on January 1, 20x8. Fir Enterprises paid $17,000 for the wood chipper and the asset currently has a book value of $8,000. The asset has a remaining useful life of 4 years, with no salvage value.
Provide Saplings entries reflecting the purchase of the wood chipper.Provide Firs entries reflecting the sale of the wood chipper.Provide the consolidating worksheet adjusting entries that must be made in 20x8.Provide the consolidating worksheet adjusting entries for 20x9 that deal with the impact of annual depreciation that occurs on the purchasing subsidiary books.
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