In 2021 Pony Company purchased land from its subsidiary, Source Sandals, for $10,000,000. The land had a book value to Source Sandals of $7,000,000. In 2024 Pony Company sells the land to an outside party for $11,000,000.     Required;   a. Prepare the  December 31, 2021 elimination entry needed for this intercompany land sale   b. Prepare the December 31, 2022 elimination entry required for this intercompany land sale   c. Prepare the December 31, 2024 elimination entry required for this intercompany land sale

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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In 2021 Pony Company purchased land from its subsidiary, Source Sandals, for $10,000,000. The
land had a book value to Source Sandals of $7,000,000. In 2024 Pony Company sells the land to an
outside party for $11,000,000.
 
 
Required;
 
a. Prepare the  December 31, 2021 elimination entry needed for this intercompany land sale
 
b. Prepare the December 31, 2022 elimination entry required for this intercompany land sale
 
c. Prepare the December 31, 2024 elimination entry required for this intercompany land sale

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