question archive Pillar Company owns 70 percent of Salt Company's outstanding common stock
Pillar Company owns 70 percent of Salt Company's outstanding common stock
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Pillar Company owns 70 percent of Salt Company's outstanding common stock. On December 31, 2018, Salt sold equipment to Pillar at a price in excess of Salt's carrying amount, but less than its original cost. On a consolidated balance sheet at December 31, 2018, the carrying amount of the equipment should be reported at:
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Answer - Pillar's original cost less Salt's recorded gain.
On a consolidated balance sheet at December 31, 2018, the carrying amount of the equipment should be reported at Pillar's original cost less Salt's recorded gain as Salt sold the equipment to PIlar at lesser cost than its original cost.
