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English, 16.06.2021 14:00 dameiranderson

4 FC purchased 60 percent of BC’s voting common stock on January 1, 2017, at underlying book value. On December 31 2021, FC received $210,000 from BC for a
truck FC had purchased on January 1, 2018, for $300,000. The truck is expected
to have a 10-year useful life and no salvage value. Both Companies depreciate
trucks on a straight-line basis.
Required:
2
1. Give the work paper eliminating entry or entries needed at Dec. 31 2021, to
remove the effects of the intercompany sale.
2. Give the work paper eliminating entry or entries needed at Dec. 31, 2022, to
remove the effects of the intercompany sale.

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Answers: 3

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4 FC purchased 60 percent of BC’s voting common stock on January 1, 2017, at underlying book value....
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