On January 1, 2014, the parent sold new equipment for which it paid $600,000 to the subsidiary for $1,000,000. Since the equipment was new, the parent had not recorded any depreciation on its books prior to selling the equipment. The plant assets had a remaining life of 10 years at that time, straight-line. The subsidiary still has the equipment at year-end. Prepare eliminating entries TA and ED?
You may record your response as follows:
Entry TA:
Debit Account name $$
Credit Account name $$
Entry ED:
Debit Account name $$
Credit Account name $$