On january 1 2002 trump company acquired all of the stock, Ask an Expert

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ON JANUARY 1, 2002 TRUMP COMPANY ACQUIRED ALL OF THE STOCK OF CRUZ COMPANY AT BOOK VALUE. NEITHER TRUMP NOR CRUZ PAY ANY DIVIDENDS AND TRUMP USES THE INITIAL VALUE METHOD FOR ITS INVESTMENT IN CRUZ. ON JANUARY 1, 2010 TRUMP COMPANY PURCHASED A TRUCK FOR $400,000. THIS TRUCK HAS A 20 YEAR LIFE WITH NO SALVAGE AND IS BEING DEPRECIATED USING STRAIGHT LINE DEPRECIATION. ON JANUARY 1, 2014 CRUZ COMPANY PURCHASED THE TRUCK FROM TRUMP FOR $350,000 ISSUING TRUMP A 1 YEAR 10% NOTE WITH PRINCIPLE AND INTERESET DUE ON JANUARY 1 2015.

CRUZ WILL DEPRECIATE THE TRUCK OVER 16 YEARS USING STRAIGHT LINE DEPRECIATION AND ZERO SALVAGE VALUE. ON JANUARY 1, 2015 CRUZ PAID THE INTEREST AND PRINCIPLE TO TRUMP ON JANUARY 1, 2018 CRUZ SOLD THE TRUCK TO RUBIO (AN OUTSIDE COMPANY) FOR $275,000. Answer all of the following below: RECORD THE JOURNAL ENTRY TRUMP MADE WHEN HE BOUGHT THE TRUCK DETERMINE THE ANNUAL DEPRECIATION OF THE TRUCK TO TRUMP COMPANY MAKE THE JOURNAL ENTRY TRUMP MAKES WHEN IT SELLS THE TRUCK TO CRUZ MAKE THE JOURNAL ENTRY CRUZ MAKES WHEN IT BUYS THE TRUCK DETERMINE THE ANNUAL DEPRECIATION OF THE TRUCK TO CRUZ COMPANY MAKE THE JOURNAL ENTRY CRUZ MAKES WHEN IT PAYS OFF THE LOAN TO TRUMP MAKE THE JOURNAL ENTRY CRUZ MAKES WHEN IT SELLS THE TRUCK TO RUBIO

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Accounting Basics, Accounting

Category:- Accounting Basics
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