A partially owned subsidiary sold a machine to its parent at a gain. In the year subsequent to the year of intercompany sale of equipment, the working paper consolidation entry under cost method will debit: I. Equipment Ill. Accumulated Depreciation V. NCI lIl. Investment in subsidiary IV. Retained Earnings a. IV and V b. I, IV and V c. I, II and V d. IIII and IV

A partially owned subsidiary sold a machine to its parent at a gain. In the year subsequent to the year of intercompany sale of equipment, the working paper consolidation entry under cost method will debit: I. Equipment Ill. Accumulated Depreciation V. NCI lIl. Investment in subsidiary IV. Retained Earnings a. IV and V b. I, IV and V c. I, II and V d. IIII and IV

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 9MC

See similar textbooks

Related questions

Q: Starting from the separate cost of goods sold of the affiliates, the consolidated cost of goods sold…

A: Consolidation refers to the process under which two or more companies combine their assets,…

Q: opic: Non-Current Assets Held for Sale and Discontinued Operations 15. Which of the following…

A: Assets Held for Sale The treatment of Assets held for sale which incurred whether the lower of the…

Q: In the year a subsidiary sells land to its parent company at a gain, a workpaper entry is made…

A: The Work paper entry is the entry that is used to eliminate the impact of unearned profit which is…

Q: In a mid-year purchase when the subsidiary’s books are not closed until the end of the year, the…

A: The subsidiary income will be shown in the parent’s statements in case of midyear purchase till the…

Q: sale of depreciable assets Equity method Preparing the consolidation journal e Assume that on…

A: a. Particulars Amount ($) Amount ($) Depreciation (before transfer) Cost 156000 Less:…

Q: What percentage of the intercompany loss on plant asset sale should be used to adjust consolidated…

A: Introduction: To present the Consolidated financial statement, the effect of transactions between…

Q: mpany sale, a workpaper entry is made by debiting. A. All of these.

A: The correct answer is : A. All of these.

Q: Statement 1: Current fair value of the investment adjusted for dividends received describes the…

A: The investment in a subsidiary in the separate financial statement is recognized at a cost or fair…

Q: In years subsequent to the year a 90% owned subsidiary sells equipment to its parent company at a…

A: The question is related to Consolidated Financial Statements and is multiple choice question.…

Q: In a mid-year purchase when the subsidiary's books are not closed until the end of the year, the…

A: A consolidated financial statement is a group's financial statement that is presented as a single…

Q: Consolidated net income for a parent company and its partially owned subsidiary is best defined as…

A: The entity which holds stock of more than 50% in other one is known as a parent or holding entity.…

Q: amount of goodwill at the acquisition date. Part B Determine the following numbers from the…

A: Shares - An equity ownership stake in a corporation is represented by a share. Dividends from any…

Q: Statement I: In a business combination achieved in stages, the resulting gain or loss from the…

A: The question is related to IFRS 3 Business Combination. The para 42 of IFRS 3 details with business…

Q: Profits on sale of inventories between Parent and Subsidiary Companies is when goods are held still…

A: Sale and Purchase of Inventory between Parent and subsidiary company is realized and added to…

Q: On January 1, 20X1, Porta Corporation purchased Swick Company's net assets and assigned goodwill of…

A: Concept of impairment of assets Details Available Testing Good will for impairment…

Q: What percentage of the intercompany loss on plant asset sale should be used to adjust consolidated…

A: In accounting, consolidation means the combination of assets, liabilities, and all the other…

Q: Two methods of allocating joint costs to main products are physical measure allocation and…

A: Cost allocation: Cost allocation is a process of assigning or allocating indirect costs to each and…

Q: rofit on end

A: Consolidation of accounting books means combination of accounts of parent company and subsidiary…

Q: the years subsequent to the year of sale of a 90% owned subsidiary who sells equipment to its parent…

A: Solution Concept When there is a sale made (upstream or down stream ) and if the goods remains…

Q: In the year an 80% owned subsidiary sells equipment to its parent company at a gain, the…

A: Answer: Option (D). Minus the net amount of unrealized gain on the intercompany sales is correct.

Q: 13. On December 31, 20x2, the machinery remains unsold. The fair value of the machinery on December…

A: Recoverable Amount of Asset: When calculating an asset's recoverable value, it's important to keep…

Q: Tanner Company, a subsidiary acquired for cash, owned Furniture with a fair value higher than the…

A: Parent company is the company which acquires shares or stock in another company, known as subsidiary…

Q: A gain on a bargain purchase is A. Recognized in profit or loss in the year of acquisition B.…

A: Bargain Purchase means the acquisition of Assets at a value that is substantially less than their…

Q: A partially owned subsidiary sold a non-depreciable assets to its parent at a loss. In the year…

A: Solution Depreciation is used to lower the value of an asset during a period of time. It depreciates…

Q: Assume an income statement with the following classifications: Revenues Cost of goods sold…

A: “Since you have asked multiple sub-parts, we will solve the first three sub-parts for you. If you…

Q: Requirements: WHAT IS THE AMOUNT OF: A. Goodwill to be reported on the consolidated balance sheet…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Any inter-company gain on a downstream sale of fixed assets should be recognized in consolidated net…

A: Downstream sale of fixed assets means that the parent company has sold one or many of their assets…

Concept explainers

Employer Pension Plan

An employer pension plan is a retirement benefit provided by an employer to employees before or after they retire. Over the course of the employees' working lives, the employer should invest a lump sum or make monthly contributions to investment schemes in employees' names. It is the employer's legal responsibility to provide employees with retirement plans that support them with guaranteed financial security in retirement.

Question

I. Equipment Ill. Accumulated Depreciation V. NCI

lIl. Investment in subsidiary IV. Retained Earnings

a. IV and V

b. I, IV and V

c. I, II and V

d. IIII and IV

Video Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1Basic Information

VIEW

Step 2 Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

A partially owned subsidiary sold a non-depreciable assets to its parent at a loss. In the year subsequent to the year of intercompany sale of non-depreciable assets, the working paper consolidation entry under cost method will debit: I. Non-depreciable assets Ill. NCI I. Investment in subsidiary IV. Retained Earnings a. I, III and IV b. I c. III and IV d. I, II, and IV
Company SSS sells equipment to its parent company at a gain. In years subsequent to the year of the intercompany sale, a workpaper entry is made by debiting. A. All of these. B. Non-controlling Interest C. Equipment D. Retained Earnings- Parent
Any inter-company gain on a downstream sale of fixed assets should be recognized in consolidated net income: I. in the year of the downstream sale.II. over the period of time the subsidiary uses the asset.III. in the year the subsidiary sells the assets to an unrelated party. Group of answer choices I. II. III. I and II
In the year a subsidiary sells land to its parent company at a gain, a workpaper entry is made debiting i.Retained Earnings- Parent Company ii.Retained Earnings- Subsidiary Company iii.Gain on sale of land A. i only B. iii only C. ii only D. both i and ii only
Part A Determine the amount of goodwill at the acquisition date. Part B Determine the following numbers from the consolidated income statement for the year ending December 31, Year 11 Sales Dividend, investment income, and gains Cost of goods sold Other expenses Income tax expense Profit Non-controlling interest Part C Calculate the consolidated retained earnings at December 31, Year 11. The consolidated retained earnings is Part D Determine the following numbers from the consolidated balance sheet at December 31, Year 11 Cash and current receivables Inventories Deferred income tax asset Goodwill Plant and equipment Accumulated depreciation Land Current liabilities Deferred tax liability Long-term liabilities Ordinary shares Non-controlling interest
In a mid-year purchase when the subsidiary’s books are not closed until the end of the year, the purchase income account contains the parent’s share of theA. Subsidiary’s income earned from the beginning of the year to the date of acquisition.B. Subsidiary’s income earned from the date of acquisition to the end of the year.C. Consolidated net income.D. Subsidiary’s income earned for the entire year
Tanner Company, a subsidiary acquired for cash, owned Furniture with a fair value higher than the book value as of the date of combination. A consolidated balance sheet prepared immediately after the acquisition would include this difference in: Select one: a. Furniture b. retained earnings c. differential d. goodwill
Starting from the separate cost of goods sold of the affiliates, the consolidated cost ofgoods sold will be affectedby all of the following, except: A.Excess of inventory FV over BV of the subsidiary at the date of acquisitionB.Unrealized profit on ending inventoryC.Realized profit on beginning inventoryD.Amortization of the excess of inventory FV over BV of the subsidiary
In the year an 80% owned subsidiary sells equipment to its parent company at a gain, the non-controlling interest in consolidated income is calculated by multiplying the non-controlling interest percentage by the subsidiary’s reported net income A. Plus the net amount of unrealized gain on the intercompany sale B. Plus the intercompany gain considered realized the current period C. Minus the intercompany gain considered realized in the current period. D. Minus the net amount of unrealized gain on the intercompany sales
A gain on a bargain purchase is A. Recognized in profit or loss in the year of acquisitionB. Amortized in profit or loss over the lower of its legal life and estimated useful lifeC. Recognized in profit or loss in the year of acquisition but only after reassessment of the assets acquired and liabilities assumed in the business combinationD. None of the above
In the years subsequent to the year of sale of a 90% owned subsidiary who sells equipment to its parent company at a gain, the non-controlling interest in consolidated income is computed by multiplying the non-controlling interest percentage by the subsidiary’s reported income: A. After adding intercompany gain considered realized in that period. B. After adding the intercompany gain on sales C. After deducting the intercompany gain on sales D. After deducting intercompany gain considered realized in that period.
S1: Two methods of allocating joint costs to main products are physical measure allocation and market-based allocation.S2: If an intercompany sale of a depreciable asset occurs on the last day of the year and results in a gain to the seller, the asset must be shown on the consolidated balance sheet at its original book value. a. True; False b. False; False c. False; True d. True; True