Plato Company sold equipment to its wholly owned subsidiary, Sawyer Company, on January 2,2013. At time of sale, Plato’s books showed the equipment at cost of $750,000 and accumulated depreciation of...

Plato Company sold equipment to its wholly owned subsidiary, Sawyer Company, on January 2,2013. At time of sale, Plato’s books showed the equipment at cost of $750,000 and accumulated depreciation of $200,000. Sawyer bought the equipment for $800,000 and depreciated it over its remaining five-year life (straight-line, no salvage value). Required a. Prepare the necessary consolidation eliminating entries at December 31,2013. b. Prepare the necessary consolidation eliminating entries at December 31,2014. View Solution:

Plato Company sold equipment to its wholly owned subsidiary Sawyer