An intra-entity transfer of a depreciable asset took place whereby the transfer price exceeded the book value of the asset. Which statement is true with respect to the year following the year in which the transfer occurred? Group of answer choices A worksheet entry is made with a debit to gain for a downstream transfer. A worksheet entry is made with a debit to gain for an upstream transfer. A worksheet entry is made with a debit to investment in subsidiary for a downstream transfer when the parent uses the equity method. A worksheet entry is made with a debit to retained earnings for a downstream transfer, regardless of the method used account for the investment. No worksheet entry is necessary.
An intra-entity transfer of a depreciable asset took place whereby the transfer price exceeded the book value of the asset. Which statement is true with respect to the year following the year in which the transfer occurred? Group of answer choices A worksheet entry is made with a debit to gain for a downstream transfer. A worksheet entry is made with a debit to gain for an upstream transfer. A worksheet entry is made with a debit to investment in subsidiary for a downstream transfer when the parent uses the equity method. A worksheet entry is made with a debit to retained earnings for a downstream transfer, regardless of the method used account for the investment. No worksheet entry is necessary.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
(CO 3) An intra-entity transfer of a
Group of answer choices
A worksheet entry is made with a debit to gain for a downstream transfer.
A worksheet entry is made with a debit to gain for an upstream transfer.
A worksheet entry is made with a debit to investment in subsidiary for a downstream transfer when the parent uses the equity method.
A worksheet entry is made with a debit to retained earnings for a downstream transfer, regardless of the method used account for the investment.
No worksheet entry is necessary.
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!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
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.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education