On January 1, 2025, Jill Inc. sold equipment to its subsidiary, Tim Co., for $125,000. The equipment had cost $150,000, and the balance in accumulated depreciation was $70,000. The equipment had an estimated remaining useful life of eight years and no salvage value. Both companies use straight-line depreciation. On their separate 2025 income statements, Jil and Tim reported depreciation expenses of $86,000 and $64,000, respectively. The amount of depreciation expense on the consolidated income statement for 2025 would have been: O $134,375. O $144,375.

On January 1, 2025, Jill Inc. sold equipment to its subsidiary, Tim Co., for $125,000. The equipment had cost $150,000, and the balance in accumulated depreciation was $70,000. The equipment had an estimated remaining useful life of eight years and no salvage value. Both companies use straight-line depreciation. On their separate 2025 income statements, Jil and Tim reported depreciation expenses of $86,000 and $64,000, respectively. The amount of depreciation expense on the consolidated income statement for 2025 would have been: O $134,375. O $144,375.

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Description: On January 1, 2025, Jill Inc. sold equipment to its subsidiary, Tim Co., for $125,000. Theequipment had cost $150,000, and the balance in accumulated depreciation was $70,000.The equipment had an estimated remaining useful life of eight years and no

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 11E: On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an...

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