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San Diego State University Operations And Supply Chain Management Assignment Help - Dividends

Question - 1. On January 1, 2011, Pan Company sold equipment to its wholly-owned subsidiary, Sun Company,
for $1,800,000. The equipment cost Pan $2,000,000. Accumulated depreciation at the time of sale
was $500,000. Pan was depreciating the equipment on the straight-line method over 20 years with no
salvage value, a procedure that Sun continued. On the consolidated balance sheet at December 31,
2011 the cost and accumulated depreciation, respectively, should be:
a. $1,500,000 and $600,000
b. $1,800,000 and $100,000
c. $1,800,000 and $500,000
d. $2,000,000 and $600,000
2. In the preparation of consolidated financial statements, intercompany items for which eliminations
will not be made are:
a. Purchases and sales where the parent employs the ...Read More

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