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When d sub sold PPE to the parent half way thru d this year, the NBV of d plant was $750,000 & d transfer price was $820,000. Whilst d sub owned d plant, it was being depr on a straight line basis over its remaining estimated useful life of 7 yrs. However, on d sale to d parent, d estimate of d remaining useful life was revised to 5 yrs. The group charges full yr depr in d yr purch & none in d yr of sale?
Oh sorry sir. The qn is whr adj shd be made in d records of d sub for d purposes of d consolidation?
I had thought d adj and be (750000/7*6/12). But a answer isn’t thereI calculate it as $70,000/ 5 = $14,000
For half a year = $7,000
So pup is $70,000 – $7,000 = $63,000
Do you think it would be a good idea to stop this silly “d” business?
It doesn’t take long to type “the” and you surely are not so busy that you don’t have time to be professional
I worry because you may well start to write “d” in the exam and there goes all the professional marks
Oh! Thank you. I got it clearer now!
And sorry for the nauseating “d’s”
I sure won’t write that way in the exams.
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