Answered: When an entity sells a non-current…

When an entity sells a non-current asset at a profit to another entity within the same group, which of the following adjustments is necessary on consolidation

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 16MCQ

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Question

When an entity sells a non-current asset at a profit to another entity within the same group, which of the following adjustments is necessary on consolidation?

Select one:

a. Dr Asset, DR Gain on sale

b. Dr Gain on sale, CR Asset

c. Dr Gain on sale, CR Cash

d. Dr Asset, CR Cash

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