This is what I have but it is wrong can someone guide me through this problem B) UNREALIZED NET GAIN $           36,000 ORIGINAL COST $      120,000 SALE OF EQUIPMENT $      60,000 UNREALIZED GAIN 01/2019 $             45,000 50000*90% ACCUMULATED DEPRECIATION (110,000) BV 01/2019 (10,000) DEPRECIATION ON GAIN $              (9,000) 50000/5*90% BOOK VALUE 10,000 GAIN ON SALE 50,000 UNREALIZED GAIN 01/2020 $             36,000 Transcribed Image Text: Pearl Company acquired

This is what I have but it is wrong can someone guide me through this problem B) UNREALIZED NET GAIN $           36,000 ORIGINAL COST $      120,000 SALE OF EQUIPMENT $      60,000 UNREALIZED GAIN 01/2019 $             45,000 50000*90% ACCUMULATED DEPRECIATION (110,000) BV 01/2019 (10,000) DEPRECIATION ON GAIN $              (9,000) 50000/5*90% BOOK VALUE 10,000 GAIN ON SALE 50,000 UNREALIZED GAIN 01/2020 $             36,000 Transcribed Image Text: Pearl Company acquired
90 %
of Star Corporation on 1/2018. Fair values of Star’s assets and liabilities
approximated book values on that date. Pearl uses the initial value method
to account for its investment in Star.
On 1/2019, Pearl bought equipment from Star for $60,000 that
had originally cost Star $120,000 and had
of Accumulated depreciation at the time. The equipment had a five-year
$ 110,000
remaining life and was being depreciated using the straight line method.
You are preparing the worksheet for the 2020 fiscal year.
b. How much unrealized net gain from the equipment transfer remains at the
beginning of 2020? (this is the amount you will need for the *TA entry at 1/2020.)

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