Blue Corporation holds 70 percent of Black Company's voting common stock. On January 1, 20X3,...
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Blue Corporation holds 70 percent of Black Company's voting common stock. On January 1, 20X3, Black paid $500,000 to acquire a building with a 10-year expected economic life. Black uses straight-line depreciation for all depreciable assets. On December 31, 20X8, Blue purchased the building from Black for $180,000. Based on the information provided, in the preparation of the 20X8 consolidated financial statements, equipment will be ______ in the consolidation entries. Group of answer choices
debited for $320,000
debited for $300,000
credited for $20,000
credited for $180,000
Based on the information provided, the loss on the sale of the equipment eliminated in the consolidated financial statements for 20X8 is:
$50,000
$45,000
$20,000
$5,000
Based on the information provided, while preparing the 20X9 consolidated income statement, depreciation expense will be
Group of answer choices
credited for $5,000 in the consolidation entries.
debited for $5,000 in the consolidation entries.
credited for $2,500 in the consolidation entries.
debited for $2,500 in the consolidation entries.
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