Upstream On January 2, 2008. Castine Company, a 70 percent-owned subsidiary, sold equipment to its...
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Upstream On January 2, 2008. Castine Company, a 70 percent-owned subsidiary, sold equipment to its parent company, Ripley Corporation, for $280,000. The equipment originally was purchased at the beginning of 2003 for $760,000 and was being depreciated on a straight-line basis over an 10 year period. The equipment was not expected to have any residual value at the end of its life. There was no change in the estimated life or residual value of the equipment at the time of the intercompany sale. Required: Give all eliminating entries related to the equipment that would be needed in workpapers to prepare consolidated financial statements for 2008 and 2009. 1) 2008: 2) 2009
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