(Module 1) On 1/2/06, Pidox sold equipment costing $100,000 to its 100%-owned subsidiary, Sidox, for $48,000. At the time of the sale, the equipment had been depreciated $40,000 (over a 10-year life using straight-line depreciation). Sidox continued depreciating the equipment by using the straight-line method over a remaining life of 6 years. Sidox reported $600,000 of net income for 2007.
Required:
a. Prepare the general ledger entry required at 12/31/07-not 12/31/06-under the complete equity method.
b. Prepare the consolidation entry or entries required at 12/31/07-not 12/31/06.

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The Answer of (Module 1) On 1/2/06, Pidox sold equipment costing $100,000 to its 100%-owned subsidiary, Sidox, for $48,000. At the time of the sale, the equipment had been depreciated $40,000 (over a 10-year life using straight-line depreciation). Sidox continued depreciating the equipment by using the straight-line method over a remaining life of 6 years. Sidox reported $600,000 of net income for 2007.
Required:
a. Prepare the general ledger entry required at 12/31/07-not 12/31/06-under the complete equity method.
b. Prepare the consolidation entry or entries required at 12/31/07-not 12/31/06.

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