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Business, 09.11.2019 07:31 ronaldotheexplorer12

Pea company purchased 70 percent of split company’s stock approximately 20 years ago. on december 31, 20x8, pea purchased a building from split for $300,000. split had purchased the building on january 1, 20x1, at a cost of $400,000 and used straight-line depreciation on an expected life of 20 years. the asset’s total estimated economic life is unchanged as a result of the intercompany sale.
required :
a. what amount of depreciation expense on the building will pea report for 20x8?

b. what amount of depreciation expense would split have reoportedfor 20x8 if it had continued to own the building?

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Pea company purchased 70 percent of split company’s stock approximately 20 years ago. on december 31...
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