18 Required information On January 1, 20X7, Server Company purchased a machine with an expected...
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18 Required information On January 1, 20X7, Server Company purchased a machine with an expected economic life of five years. On January 1, 20X9, Server sold the machine to Patron Corporation and recorded the following entry: Part 4 of 4 Cash 45,000 28,000 Accumulated Depreciation Machine Gain on Sale of Equipment 70,000 3,000 Patron Corporation holds 75 percent of Server's voting shares. Server reported net income of $50,000, and Patron reported income from its own operations of $100,000 for 20X9. There is no change in the estimated economic life of the equipment as a result of the intercorporate transfer. Based on the preceding information, consolidated net income for 20x9 will be: Multiple Choice $150,000 $100,000. O $148,000. $130,000
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