Pepper owns since year 1 and always own that percent | 0 0,250 Use...
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Pepper owns since year 1 and always own that percent
| 0 0,250 Use the following information to answer #49-#52: On January 1, Year 1, Salt Corporation purchased a computer with an expected economic life of five years. On January 1, Year 3. Salt sold the computer to Pepper Inc. and recorded the following entry: Cash 39,000 Accumulated Depreciation 16,000 Computers 40,000 Gain on Sale 15,000 Pepper owns 60% of Salt's voting shares. In Year 3, Salt reported net income of $45,000, and Pepper reported income from its own operations of $85,000. There is no change in the estimated economic life of the equipment as a result of the intercorporate transfer. 49. In the eliminating entries column of the consolidation worksheet for Year 3. depreciation expense will be a. debited for $5,000. b. credited for $5.000. C. debited for $13,000. d. credited for $13,000. 50. In the eliminating entries column of the consolidation worksheet for Year 3. computers will be a. debited for $1,000. b. debited for $15,000. C. credited for $24,000. d. debited for $40,000. 51. Income assigned to NCI for Year 3 will be a. $12,000 b. $14,000 c. $18,000 d. $52,000 52. Consolidated net income for Year 3 will be a. $130,000 b. $120,000 c. $115,000 d. $106,000
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