Use the Following Information to Answer the Question(s) Below

question 12

Short Answer

Use the following information to answer the question(s) below.

On December 31, 2014, Pinne Corporation sold equipment with a three-year remaining useful life and a book value of $21,000 to its 70%-owned subsidiary, Sull Company, for a price of $27,000. Pinne bought the equipment four years ago for $49,000. The salvage value is zero. Straight-line depreciation is used by both companies.

-After eliminating/adjusting entries are prepared,what was the intercompany sale impact on the consolidated financial statements for the year ended December 31,2014?

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Definitions:

Black Political

Refers to the political activities, ideologies, and movements that focus on issues important to Black communities, often emphasizing social justice, racial equality, and civil rights.

McDonaldization

A term describing the process by which the principles of the fast-food industry, such as efficiency, calculability, predictability, and control, have come to dominate other sectors of society.

Organizational Principle

Fundamental concepts or guidelines that dictate the structure, operation, and management of an organization, shaping its culture and functioning.

Efficiency

The ability to accomplish a task using the least amount of resources possible.