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1. Which of the following is not correct regarding transfer of depreciable Assets
a)Adjust transferred asset back to old basis
b)Eliminate the sellers gain
c)Adjust depreciation back as if the original owner had depreciated the asset based on the revised estimate of useful life.
d)Transferred fixed Assets is accounted for similar to the transfer of inventory
2. The goal in preparing eliminating entries related to asset transfers among affiliated companies is to:
a)Emphasize gains and losses in the consolidated financial statements.
b)Eliminate gains and losses and re-adjust the basis of the transferred asset to what it would have been on the original owners books.
c)Augment consolidated income.
d)Decrease consolidated income.
3. Which of the following is not correct regarding transfer of depreciable Assets
a)Adjust transferred asset back to old basis
b)Eliminate the sellers gain
c)Adjust depreciation back as if the original owner had depreciated the asset based on the revised estimate of useful life.
d)Transferred fixed Assets is accounted for similar to the transfer of inventory
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