Homework Answers
Answer is option (a) $262500
Clearwater hold all the voting power of Kelley
Sold machinery to laleet at the price of $350000
Book value of asset at the time of sale $450000
Accumulated depreciation is $net value is $300000
Remaining life 8 years
For consolidated purpose
Asset is shown at the price at which it is transferred at net book value less the amount of depreciation of current year.
= 300000/8
=37500 current year dep
Asset value to be shown in console is =300000-37500=$262500
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