ADVANCED FIN. ACCT.(LL)-W/CONNECT
ADVANCED FIN. ACCT.(LL)-W/CONNECT
12th Edition
ISBN: 9781264582129
Author: Christensen
Publisher: MCG CUSTOM
Question
Book Icon
Chapter 7, Problem 7.18E
To determine

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 balance sheet on December 31 20X3.

To determine

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.

To determine

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.

To determine

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.

Blurred answer
Students have asked these similar questions
Accounts receivable: 67000, cost of goods sold: 295000
Qantas Industries has fixed costs of $250,000 and profit of $125,000. What is its degree of operating leverage? a. 1.5 b. 3 c. 2 d. 2.5 solve this Accounting problem
General Accounting

Chapter 7 Solutions

ADVANCED FIN. ACCT.(LL)-W/CONNECT

Knowledge Booster
Background pattern image
Similar questions
Recommended textbooks for you
Text book image
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
Text book image
SWFT Comprehensive Volume 2019
Accounting
ISBN:9780357233306
Author:Maloney
Publisher:Cengage