REFERENCE: Ref.05_11 Pepe,Incorporated Acquired 60% of Devin Company on January 1,2009.On That
REFERENCE: Ref.05_11
Pepe,Incorporated acquired 60% of Devin Company on January 1,2009.On that date Devin sold equipment to Pepe for $45,000.The equipment had a cost of $120,000 and accumulated depreciation of $66,000 with a remaining life of 9 years.Devin reported net income of $300,000 and $325,000 for 2009 and 2010,respectively.Pepe uses the equity method to account for its investment in Devin.
-What is the consolidated gain or loss on equipment for 2009?
A) $0.
B) $9,000 gain.
C) $9,000 loss.
D) $21,000 gain.
E) $21,000 loss.
Correct Answer:
Verified
Q43: Compute consolidated sales.
A) $10,000,000.
B) $10,126,000.
C) $10,140,000.
D) $10,200,000.
E)
Q58: An intercompany sale took place whereby the
Q59: REFERENCE: Ref.05_07
On April 1,2009 Wilson Company,a 90%
Q61: REFERENCE: Ref.05_10
Stark Company,a 90% owned subsidiary of
Q62: REFERENCE: Ref.05_10
Stark Company,a 90% owned subsidiary of
Q64: REFERENCE: Ref.05_11
Pepe,Incorporated acquired 60% of Devin Company
Q65: REFERENCE: Ref.05_10
Stark Company,a 90% owned subsidiary of
Q66: REFERENCE: Ref.05_10
Stark Company,a 90% owned subsidiary of
Q67: REFERENCE: Ref.05_09
Stiller Company,an 80% owned subsidiary of
Q68: REFERENCE: Ref.05_10
Stark Company,a 90% owned subsidiary of
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