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.
Chapter 5 Solutions
Advanced Accounting
Ch. 5 - Prob. 1QCh. 5 - Prob. 2QCh. 5 - Prob. 3QCh. 5 - Prob. 4QCh. 5 - James, Inc., sells inventory to Matthews Company,...Ch. 5 - Prob. 6QCh. 5 - Prob. 7QCh. 5 - Prob. 8QCh. 5 - Prob. 9QCh. 5 - Prob. 10Q
Ch. 5 - Prob. 11QCh. 5 - Prob. 12QCh. 5 - Prob. 13QCh. 5 - Prob. 1PCh. 5 - Prob. 2PCh. 5 - Prob. 3PCh. 5 - Prob. 4PCh. 5 - Prob. 5PCh. 5 - Prob. 6PCh. 5 - Prob. 8PCh. 5 - Prob. 11PCh. 5 - What is the total of consolidated cost of goods...Ch. 5 - Prob. 13PCh. 5 - Prob. 14PCh. 5 - Prob. 15PCh. 5 - What is the consolidated total for inventory at...
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Which two models may an entity opt for when accounting forinvestment property?arrow_forwardExplain how the accounting treatment differs between purchased and internally developed intangible assets.arrow_forwardDescribe a variable interest entity, a primary beneficiary, and the factors used to decide when a variable interest entity is subject to consolidation.arrow_forward
- Explain what a variable interest entity is, what a major beneficiary is, and what elements are utilized to determine whether or not a variable interest entity is liable to consolidation.arrow_forwardIf an entity wants to account for investment property, it may choose between two accounting models.arrow_forwardWhat is the requirement with respect to the allocation of the cost of a business acquisition? a. Cost to be allocated based on carrying amount. b. Cost to be allocated based on original cost c. Cost to be allocated based on fair value. d. None of thesearrow_forward
- Why does an intra-entity sale of a depreciable asset (such as equipment or a building) require subsequent adjustments to depreciation expense within the consolidation process?arrow_forwardWhich of the following is not considered in the determination of Total Assets after business combination? Group of answer choices a.Book value of the acquirer’s total assets. b.Fair value of the acquiree’s total assets. c.Expenses that are actually paid in relation to business combination d.Contingent considerationarrow_forwardWhen nonmonetary assets are exchanged, a company records the cost of the nonmonetary asset acquired at:arrow_forward
- During the measurement period, which of the following may affect the amount ofgoodwill from business combination? A.New information regarding estimates in the contingent consideration that are not existing atthe date of acquisitionB.Nothing can affect the amount of goodwill.C.New information regarding estimates in the contingent consideration that are existing at thedate of acquisition.D.New information regarding estimates in the contingent considerationarrow_forwardThe second step in applying the basic TCSA rules is: Select one: a. to determine the ACA for the joining entity's asset Incorrect b. to spread the ACA over the joining entity. c. to determine the ACA for the joining entity. d. to spread the ACA over the joining entity's assets.arrow_forwardDescribe the presentation of the consolidated balance sheet and income statement indicatinga) The inclusion of goodwill and gain on acquisitionb) Disclosures necessary to the financial statements.c) The impairment of goodwill. (Mention any topics / subtopics from the FASB codification if used)arrow_forward
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