Working paper eliminations are not required after the end of the economic life of a depreciable plant asset sold by a subsidiary to the parent company at a gain, although the asset is continued in use.

Question

Quizplus · Accepted Answer

Working paper eliminations are required to remove intercompany transactions, including gains on sales of assets between a subsidiary and a parent company, regardless of the asset's economic life. This ensures consolidated financial statements reflect only external transactions.

Working Paper Eliminations Are Not Required After the End of the Economic