Several years ago,Peacock International purchased 80% of the outstanding stock of Strutt Incorporated,at a time when Strutt's book values were equal to its fair values.On January 1,2009,Strutt purchased a truck for $160,000 which had no salvage value with a useful life of 8 years,depreciated on a straight-line basis.On January 1,2012,Strutt sold the truck to Peacock Corporation for $56,000.The equipment was estimated to have a five-year remaining life on this date,with no salvage value.All affiliates use the straight-line depreciation method.
Required:
Prepare the consolidation entries required for Peacock and subsidiary at:
1.December 31,2012
2.December 31,2013
3.December 31,2014
4.December 31,2015

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The Answer of Several years ago,Peacock International purchased 80% of the outstanding stock of Strutt Incorporated,at a time when Strutt's book values were equal to its fair values.On January 1,2009,Strutt purchased a truck for $160,000 which had no salvage value with a useful life of 8 years,depreciated on a straight-line basis.On January 1,2012,Strutt sold the truck to Peacock Corporation for $56,000.The equipment was estimated to have a five-year remaining life on this date,with no salvage value.All affiliates use the straight-line depreciation method.
Required:
Prepare the consolidation entries required for Peacock and subsidiary at:
1.December 31,2012
2.December 31,2013
3.December 31,2014
4.December 31,2015

Several Years Ago,Peacock International Purchased 80% of the Outstanding Stock