What amount of gain should p company record on its books in, Ask an Expert

Accounting

In January 2008, S Company, an 80% owned subsidiary of P Company, sold equipment to P Company for $1,980,000. S Company's original cost for this equipment was $2,000,000 and had accumulated depreciation of $200,000. P Company continued to depreciate the equipment over its 9 year remaining life using the straight-line method. This equipment was sold to a third party on January 1, 2011 for $1,440,000. What amount of gain should P Company record on its books in 2011?

a) $60,000.

b) $120,000.

c) $240,000.

d) $360,000.

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M986960

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - lois braggs owns a small restaurant in boston ms

Question - Lois Braggs owns a small restaurant in Boston. Ms. Bragg provided her accountant with the following summary information regarding expectations for the month of June. The balance in the cash account as of May 3 ...

Question - flounder company recently signed a lease for a

Question - Flounder Company recently signed a lease for a new office building, for a lease period of 12 years. Under the lease agreement, a security deposit of $12,890 is made, with the deposit to be returned at the expi ...

Question - buffalo industries markets cds of numerous

Question - Buffalo Industries markets CDs of numerous performing artists. At the beginning of March, Buffalo Industries had in beginning inventory 2,670 CDs with a unit cost of $7. During March, Buffalo Industries made t ...

Question - splish company purchased equipment for 221000 on

Question - Splish Company purchased equipment for $221,000 on October 1, 2017. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $12,480. Estimated production is 40,100 units an ...

Question - on january 1 2017 boston enterprises issues

Question - On January 1, 2017, Boston Enterprises issues bonds that have a $3,400,000 par value, mature in 20 years, and pay 9% interest semiannually on June 30 and December 31. The bonds are sold at par. Explain how it ...

Question - during 2014 robbys camera shop had sales revenue

Question - During 2014, Robby's Camera Shop had sales revenue of $170,000, of which $75,000 was on credit. At the start of 2014, Accounts Receivable showed a $16,000 debit balance, and the Allowance for Doubtful Accounts ...

Question - mark and patricia report adjusted gross income

Question - Mark and Patricia report adjusted gross income of $410,000 and itemized deductions of $31,000 for the interest on their home acquisition mortgage (principal amount of $890,000 acquired in 2015), $14,000 in sta ...

Questions -q1 tom is employed by aa ltd in the usa which is

Questions - Q1. Tom is employed by AA Ltd in the USA which is the parent company located in Los Angelos. Tom was transferred on the 30th of December 2017 to the subsidiary company in Brunswick Melbourne Victoria. AA Ltd ...

Question - on december 31 2016 green company finished

Question - On December 31, 2016, Green Company finished consultation services and accepted in exchange a promissory note with a face value of $770,000, a due date of December 31, 2019, and a stated rate of 5%, with inter ...

Question - por corporation is an automobile manufacturer

Question - POR Corporation is an automobile manufacturer. POR has an unused piece of manufacturing equipment in one of its factories (i.e., a capital asset). POR has been approached by CIV Ltd., who would like to purchas ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert