On 1231x2 shea sells the machine to an outside party for, Ask an Expert

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On 1/1/X1 Peck sells a machine with a $20,000 book value to its subsidiary Shea for $30,000. Shea intends to use the machine for 4 years. On 12/31/X2 Shea sells the machine to an outside party for $14,000. What amount of gain or (loss)for the sale of assets is reported on the consolidated financial statements?

a. loss of $6,000

b. loss of $1,000

c. gain of $4,000

d. gain of $14,000

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M966344

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