Advanced Accounting
Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Chapter 5, Problem 10Q
To determine

Explain the differences should be noted when the intra-entity land transfer occurs.

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Demonstrate the consolidation procedures to eliminate intra-entity sales and purchases balances.
An entry is necessary to eliminate the full amount of the gain on the sale of land and to reduce the land to its cost basis to the consolidated entity whether the intercompany sale is upstream or downstream
The following rules represent correct guidelines in the transfer to and from investment property classification except: Group of answer choices     For transfers from inventory to PPE, the difference between fair value and the previous carrying amount is recognized in profit or loss during the period.   For transfers from investment property carried at fair value to inventories, the difference between fair value and carrying amount shall be recognized in profit or loss during the period.   For transfers from investment property carried at fair value to PPE, the fair value at the date of change of use is the cost of the property under the new classification.   For transfers from PPE to investment property carried at fair value, any difference from carrying amount and fair value is treated as revaluation.
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