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    Consolidations: Sale of depreciable assets to parent by sub

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    How do you record depreciable assets sold to a parent by a subsidiary? How does the interest in the consolidated income statement reflect this sale? Is it more, less or the same proportional shares of the reported net income of the subsidiary?

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    https://brainmass.com/business/accounting/consolidations-sale-depreciable-assets-parent-sub-549753

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    First, let's review what happens when a subsidiary sells an asset to the parent at a profit. The parent records an asset at a "stepped up bases" and begins to depreciate at the higher rate. The subsidiary records a gain, removes the assets and ceases with the depreciation. So, in ...

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