(Module 1) On 1/3/06, Pancoe sold equipment costing $100,000 to its 100%-owned subsidiary, Sancoe, for $80,000. At the time of the sale, the equipment had been 50% depreciated (using the straight-line method and an assigned life of 10 years). Sancoe continued depreciating the equipment by using the straight-line method over a remaining life of 5 years. Sancoe reported net income of $300,000 for 2006.
Required:
a. Prepare the general ledger entry required at 12/31/06 under the complete equity method.
b. Prepare the consolidation entry or entries required at 12/31/06.

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The Answer of (Module 1) On 1/3/06, Pancoe sold equipment costing $100,000 to its 100%-owned subsidiary, Sancoe, for $80,000. At the time of the sale, the equipment had been 50% depreciated (using the straight-line method and an assigned life of 10 years). Sancoe continued depreciating the equipment by using the straight-line method over a remaining life of 5 years. Sancoe reported net income of $300,000 for 2006.
Required:
a. Prepare the general ledger entry required at 12/31/06 under the complete equity method.
b. Prepare the consolidation entry or entries required at 12/31/06.

(Module 1) on 1/3/06, Pancoe Sold Equipment Costing $100,000 to Its