QUESTION 3 (25 POINTS) PT Pizzeria purchased 80% of its supplier, PT Sizzleria. Sizzleria's book...
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QUESTION 3 (25 POINTS) PT Pizzeria purchased 80% of its supplier, PT Sizzleria. Sizzleria's book value equaled fair value at the time of the acquisition. Pizzeria sold to Sizzleria a production machine on January 2, 2013 for Rp100,000,000. The equipment had a carrying value of Rp90,000,000 and original cost of Rp120,000,000 with a remaining life of 10 years. Both Pizzeria and Sizzleria depreciate their assets on the straight-line method. The equipment has no salvage value. At the end of 2013, the net income of Sizzleria was Rp80,000,000. Required: Prepare the following entries: a. Necessary journal entries on Pizzeria and Sizzleria's separate books in 2013: - At the date of sale of the machine N - At the end of the year, which consists of the necessary journal entries to record the depreciation and investment income. b. Eliminating/adjusting entries on the consolidated worksheet at the end of 2013. c. Eliminating/adjusting entries on the consolidated worksheet at the end of 2014
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