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1、ACC 436Intercorporate Transfers: Noncurrent AssetsIn each of the 3 independent situations below, give the eliminating entries for the years ended December 31,2011,2012, and 2013 related to the intercompany transactions:Safari Company is a 75%-owned subsidiary of Paradise Company. On December 31, 201
2、1, Paradise sold equipment to Safari (a downstream transfer) for $72,000. The equipment cost Paradise $ 120,000 and had a book value of S60,000 on December 31, 2011. The equipment has remaining useful life of 5 years and no residual value is expected. Both companies use straight-line depreciation.Pe
3、ach Corporation holds 90% of the common shares of Sorbet Corporation. On January 1,2011, Sorbet sold equipment with a book value of $240,000 to Peach (an upstream transfer) for $280,000. Accumulated depreciation of $210,000 has been recorded on the equipment over the past 7 years. It was determined
4、that the equipment has an estimated remaining life of 8 years and no residual value. The companies use straight-line depreciation.Pluto Corporation owns 80% of Saturn Companys common stock. On January I, 2011, Saturn sold equipment to Pluto for $12,000. The equipment originally cost $ 16,000 and had
5、 a January 1,2011 book value of $9,000. The equipments remaining life was estimated to be 5 years. On December 31,2011, Pluto sold land and a building to Saturn The land that had originally cost $60,000 was sold to Saturn for $ 100,000. The building cost S600.000 but had $440,000 in accumulated depreciation at the time it was sold to Saturn for $200,000. The building is to be depreciated over a remaining life of 8 years. Straight-line depreciation with no salvage value is to be used for all depreciable assets.
