Company 1 acquired a 70% interest in Company 2 on January 1, 2021. On that date, Company 1 sold a piece of equipment to

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answerhappygod
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Company 1 acquired a 70% interest in Company 2 on January 1, 2021. On that date, Company 1 sold a piece of equipment to

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Company 1 acquired a 70% interest in Company 2 on January 1, 2021. On that date, Company 1 sold a piece of equipment to Company 2 for $100,000. The equipment initially cost Company 1 $130,000 and they had taken $70,000 worth of depreciation on the machine as of the time of the sale.
Company 2 will continue using and depreciating the machine following the straight line method for the next 10 years.
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