Intercompany transfers:When intercompany transfer of asset occur, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by acquiring company, when the asset is transferred at book value no special adjustments are needed. But when the asset is transferred at more or less than the book value, the unrealized gain or loss is deferred until the asset is sold to unrelated party. Moreover in the consolidation the gain or loss will be eliminated.
At what amount should the land be reported in consolidated
Intercompany transfers:When intercompany transfer of asset occur, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by acquiring company, when the asset is transferred at book value no special adjustments are needed. But when the asset is transferred at more or less than the book value, the unrealized gain or loss is deferred until the asset is sold to unrelated party. Moreover in the consolidation the gain or loss will be eliminated.
The amount of gain or loss on sale of land reported in consolidated income statement for 20X3.
Intercompany transfers:When intercompany transfer of asset occur, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by acquiring company, when the asset is transferred at book value no special adjustments are needed. But when the asset is transferred at more or less than the book value, the unrealized gain or loss is deferred until the asset is sold to unrelated party. Moreover in the consolidation, the gain or loss will be eliminated.
The amount of income should be assigned to the controlling shareholders in consolidated income statement for 20X3.
Intercompany transfers:When intercompany transfer of asset occur, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by acquiring company, when the asset is transferred at book value no special adjustments are needed. But when the asset is transferred at more or less than the book value, the unrealized gain or loss is deferred until the asset is sold to unrelated party. Moreover in the consolidation the gain or loss will be eliminated.
Requirement 4
The consolidation entry related to land that appear in consolidation worksheet for 20X3.
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Chapter 7 Solutions
ADVANCED FINANCIAL ACCOUNTING IA
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Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning