P Corp. owns 90% of the outstanding common stock of S Company. On December 31, 2021, S sold equipment to P for an amount greater than the equipment’s book value but less than its original cost. The equipment should be reported on the December 31, 2021 consolidated balance sheet at A. P’s original cost B. P’s original cost less S’s recorded gain C. S’s original cost D. P’s original cost less 90% of S’s recorded gain
P Corp. owns 90% of the outstanding common stock of S Company. On December 31, 2021, S sold equipment to P for an amount greater than the equipment’s book value but less than its original cost. The equipment should be reported on the December 31, 2021 consolidated balance sheet at A. P’s original cost B. P’s original cost less S’s recorded gain C. S’s original cost D. P’s original cost less 90% of S’s recorded gain
P Corp. owns 90% of the outstanding common stock of S Company. On December 31, 2021, S sold equipment to P for an amount greater than the equipment’s book value but less than its original cost. The equipment should be reported on the December 31, 2021 consolidated balance sheet at A. P’s original cost B. P’s original cost less S’s recorded gain C. S’s original cost D. P’s original cost less 90% of S’s recorded gain
P Corp. owns 90% of the outstanding common stock of S Company. On December 31, 2021, S sold equipment to P for an amount greater than the equipment’s book value but less than its original cost. The equipment should be reported on the December 31, 2021 consolidated balance sheet at
A. P’s original cost
B. P’s original cost less S’s recorded gain
C. S’s original cost
D. P’s original cost less 90% of S’s recorded gain
Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.
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