Snow Company Is a Wholly Owned Subsidiary of Penguin Corporation

question 41

Essay

Snow Company is a wholly owned subsidiary of Penguin Corporation.On January 1,2011,Penguin transferred equipment to Snow for $195,000.The equipment had originally cost $250,000,but at the time of transfer,had a $180,000 book value and a five year remaining life.Both companies use the straight-line method of depreciation and assume no salvage value for the equipment.
Required: Prepare the consolidation worksheet entries for this asset on the following dates:
1.December 31,2011
2.December 31,2012
3.December 31,2013

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Definitions:

Throat

The anterior part of the neck, starting from the mouth and nasal cavity down to the larynx and esophagus, serving as a pathway for food and air.

Vitamin A

A fat-soluble vitamin important for growth, immune system function, and eye health.

Excess

An amount or quantity greater than what is considered normal or sufficient.

Pruritus

The medical term for itching, a common symptom causing the desire or reflex to scratch.