Explore BrainMass

Explore BrainMass

    Sapling, Inc. Intra company sale of asset, consolidating JE

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Sapling, Inc. is a 95%-owned subsidiary of Fir Enterprises. Fir Enterprises sells Sapling an industrial wood chipper for $10,000 on January 1, 20x8. Fir Enterprises paid $17,000 for the wood chipper and the asset currently has a book value of $8,000. The asset has a remaining useful life of 4 years, with no salvage value.

    Provide Sapling's entries reflecting the purchase of the wood chipper.
    Provide Fir's entries reflecting the sale of the wood chipper.
    Provide the consolidating worksheet adjusting entries that must be made in 20x8.
    Provide the consolidating worksheet adjusting entries for 20x9 that deal with the impact of annual depreciation that occurs on the purchasing subsidiary's books.

    © BrainMass Inc. brainmass.com June 4, 2020, 4:13 am ad1c9bdddf

    Solution Summary

    Your tutorial is attached and shows the entries and the reasoning for each requirement.