a. Was this equipment sale upstream or downstream? b. How much unrealized net gain from the equipment transfer remains at the beginning of 2022? (this is the amount you will need for the *TA entry at 1/2022.) c. Which company's Retained earnings account will be adjusted in the *TA entry in part a? (Which company was the "initiator" of the transaction?)

a. Was this equipment sale upstream or downstream? b. How much unrealized net gain from the equipment transfer remains at the beginning of 2022? (this is the amount you will need for the TA entry at 1/2022.) c. Which company's Retained earnings account will be adjusted in the TA entry in part a? (Which company was the "initiator" of the transaction?)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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