Elimination of Intercompnay Sales of Depreciable Assets | Advanced Accounting CPA Exam FAR

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Gains or losses on intercompany sales of depreciable assets are recognized either when the asset is sold to outsiders, or gradually over time as it is depreciated.
Explain the term “realized through usage.”
Accumulated depreciation should be presented in the consolidated balance sheet based on the cost of the asset to the affiliated group, and depreciation expense should be presented in the consolidated income statement also based on the cost to the affiliated group.
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[@abidaheria3400]

Respected sir,
I have a guestion.
If a parent company was bought a laptop with Rs. 20,000 0n oct-2018 and on nov-2019 this parent company (islamabadl. transfer laptop to ( Karachi )subsidiary.
Then how to pass entry.
Please guide me

[@asaprossy2733]

In January 2013, S Company, an 80% owned subsidiary of P Company, sold equipment to P Company for $1,980,000. S Company’s original cost for this equipment was $2,000,000 and had accumulated depreciation of $200,000. P Company continued to depreciate the equipment over its 9 year remaining life using the straight-line method. This equipment was sold to a third party on January 1, 2017 for $1,440,000. What amount of gain should P Company record on its books in 2017?

[@monikapancholi9743]

(a) Where the parent company does not hold 100 percent equity of the subsidiary company, what portion of the intra-group transactions between the parent entity and the subsidiary entity will need to be eliminated on consolidation ?

[@AccountingLectures]

Because you will eventually adjust the difference in NCI