Devin reported net income of 300000 and 325000 for 2009 and, Ask an Expert

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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?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M987516

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