Reference no: EM132728385

Gain on intercompany transfers of depreciable noncurrent assets $83,000 $108,000 $143,00 0$96,000

Problem 1: Assume that a parent company owns a 100% controlling interest in its long-held subsidiary. On January 1, 2013, a parent company sold equipment to the subsidiary for $155,000. The equipment originally cost the parent $180,000, and accumulated depreciation through December 31, 2012 was $72,000. The parent depreciated the equipment assuming a 15-year useful life under the straight-line method and no salvage value. After the transfer, the subsidiary will depreciate the equipment for 9 years with no salvage value. Related to the transferred equipment, what is the net balance that will be reported in the December 31, 2013 consolidated balance sheet?