(Module 2) On 1/2/06, Penex sold equipment costing $100,000 to its 100%-owned subsidiary, Senex, for $75,000. At the time of the sale, the equipment had been 60% depreciated (using the straight-line method and an assigned life of 10 years). Senex continued depreciating the equipment by using the straight-line method but assigned a remaining life of 5 years.
Required:
Prepare the consolidation entry or entries required at 12/31/06 under the partial equity method.

Question

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The Answer of (Module 2) On 1/2/06, Penex sold equipment costing $100,000 to its 100%-owned subsidiary, Senex, for $75,000. At the time of the sale, the equipment had been 60% depreciated (using the straight-line method and an assigned life of 10 years). Senex continued depreciating the equipment by using the straight-line method but assigned a remaining life of 5 years.
Required:
Prepare the consolidation entry or entries required at 12/31/06 under the partial equity method.

(Module 2) on 1/2/06, Penex Sold Equipment Costing $100,000 to Its