Homework Answers
1.
a.Ponds Corporation AC Dr $84000
Income from Sale of asset Cr $84000
b. Cash Ac Dr.84000
To Ponds Corporation a/c 84,000
(Being income from sale of asset)
2. Dec 31,2018
Machine A/c DR $84000
To cash Ac $84000
(Being asset additions)
Depreciation a/c Dr.$28000
to Machine A/c $280000
(Depreciation charged for Year end dec31 2018)
3. While the asset sold by parent company
Cash ac dr. $30,000
To Machine Ac $28000
To Income from Machine $2000
(Being asset sold on gain)
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Question text
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Question text
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