[Claudia408]

Anyone using Wiley CPA Excel for FAR?

I’m working on the section for I/C equipment eliminations… I have a question about the Should be – What Is – Difference Table… Can someone help explain a little better what those columns should be? Here’s one of the examples in the lecture but I don’t understand how to populate the table…I have the answers but struggle with what goes in the columns, can someone help?

P Corp owns 100% of S. On Jan 2 20×2 P sold to S for $40,000 machinery with a carrying amount of $30,000. S is depreciating the acquired machinery over the remaining 5 year life by straight line method. The net adjustments to compute X2 and X3 consolidate income before income tax would be increase (decrease of)?

Answer: x2: (8,000), x3: 2,000

BEC - 75 (3x)
AUD - 78 (3x)
REG - 67, 66, Aug 1
FAR - 54, Sept 8