Statement 1: When change in the estimated life of depreciable asset occurs at the time of an intercompany sale, the treatment is different than if the change occurred while the asset remained on the books of the selling affiliate. Statement 2: The branch reports ending inventory of $1,500 consisting of goods from the home office billed at 125% above cost. The related "allowance" account in the home office books must have a credit balance of $300. Statement 3: In the financial settlement of a contingent consideration classified as financial liability, the amount shall be remeasured at fair value with any gain or loss included in a profit or loss. Statement 4: Intercompany sales of inventory necessitate adjustment
Statement 1: When change in the estimated life of
Statement 2: The branch reports ending inventory of $1,500 consisting of goods from the home office billed at 125% above cost. The related "allowance" account in the home office books must have a credit balance of $300.
Statement 3: In the financial settlement of a contingent consideration classified as financial liability, the amount shall be remeasured at fair value with any gain or loss included in a profit or loss.
Statement 4: Intercompany sales of inventory necessitate adjustments to the calculation of the distribution of income to the controlling interests.
Which statement/s is/are true?
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