Intercompany transfers: When the intercompany transfer of asset occurs, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by the acquiring company. When the asset is transferred at book value no special adjustments are needed. 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 an unrelated party. Moreover in the consolidation, the gain or loss will be eliminated. The journal entry made by B to record sale of equipment 20X6.

Question

Want to see the full answer?

Answer 1

Question

Chapter 7, Problem 7.30P

a

To determine

Concept introduction:

Intercompany transfers: When the intercompany transfer of asset occurs, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by the acquiring company. When the asset is transferred at book value no special adjustments are needed. 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 an unrelated party. Moreover in the consolidation, the gain or loss will be eliminated.

The journal entry made by B to record sale of equipment 20X6.

b

To determine

Concept introduction:

Intercompany transfers: When the intercompany transfer of asset occurs, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by the acquiring company. When the asset is transferred at book value no special adjustments are needed. 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 an unrelated party. Moreover in the consolidation, the gain or loss will be eliminated.

The elimination entries for intercompany transfer of land and equipment for consolidated financial statements for 20X7.

c

To determine

Intercompany transfers: When the intercompany transfer of asset occurs, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by the acquiring company. When the asset is transferred at book value no special adjustments are needed. 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 an unrelated party. Moreover in the consolidation, the gain or loss will be eliminated.

The subsidiaries reported net income 20X7

d

To determine

Concept introduction:

Intercompany transfers: When the intercompany transfer of asset occurs, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by the acquiring company. When the asset is transferred at book value no special adjustments are needed. 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 an unrelated party. Moreover in the consolidation, the gain or loss will be eliminated.

The B’s income from its own operation excluding investments for 20X7.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

I need help solving this general accounting question with the proper methodology.

Please provide the solution to this general accounting question using proper accounting principles.

Provide step by step solution for general accounting

Answer 2

Question

Chapter 7, Problem 7.30P

a

To determine

Concept introduction:

Intercompany transfers: When the intercompany transfer of asset occurs, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by the acquiring company. When the asset is transferred at book value no special adjustments are needed. 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 an unrelated party. Moreover in the consolidation, the gain or loss will be eliminated.

The journal entry made by B to record sale of equipment 20X6.

b

To determine

Concept introduction:

Intercompany transfers: When the intercompany transfer of asset occurs, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by the acquiring company. When the asset is transferred at book value no special adjustments are needed. 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 an unrelated party. Moreover in the consolidation, the gain or loss will be eliminated.

The elimination entries for intercompany transfer of land and equipment for consolidated financial statements for 20X7.

c

To determine

Intercompany transfers: When the intercompany transfer of asset occurs, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by the acquiring company. When the asset is transferred at book value no special adjustments are needed. 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 an unrelated party. Moreover in the consolidation, the gain or loss will be eliminated.

The subsidiaries reported net income 20X7

d

To determine

Concept introduction:

Intercompany transfers: When the intercompany transfer of asset occurs, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by the acquiring company. When the asset is transferred at book value no special adjustments are needed. 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 an unrelated party. Moreover in the consolidation, the gain or loss will be eliminated.

The B’s income from its own operation excluding investments for 20X7.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 7, Problem 7.30P

a

To determine

Concept introduction:

Intercompany transfers: When the intercompany transfer of asset occurs, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by the acquiring company. When the asset is transferred at book value no special adjustments are needed. 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 an unrelated party. Moreover in the consolidation, the gain or loss will be eliminated.

The journal entry made by B to record sale of equipment 20X6.

b

To determine

Concept introduction:

Intercompany transfers: When the intercompany transfer of asset occurs, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by the acquiring company. When the asset is transferred at book value no special adjustments are needed. 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 an unrelated party. Moreover in the consolidation, the gain or loss will be eliminated.

The elimination entries for intercompany transfer of land and equipment for consolidated financial statements for 20X7.

c

To determine

Intercompany transfers: When the intercompany transfer of asset occurs, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by the acquiring company. When the asset is transferred at book value no special adjustments are needed. 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 an unrelated party. Moreover in the consolidation, the gain or loss will be eliminated.

The subsidiaries reported net income 20X7

d

To determine

Concept introduction:

Intercompany transfers: When the intercompany transfer of asset occurs, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by the acquiring company. When the asset is transferred at book value no special adjustments are needed. 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 an unrelated party. Moreover in the consolidation, the gain or loss will be eliminated.

The B’s income from its own operation excluding investments for 20X7.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 7, Problem 7.30P

a

To determine

Concept introduction:

Intercompany transfers: When the intercompany transfer of asset occurs, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by the acquiring company. When the asset is transferred at book value no special adjustments are needed. 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 an unrelated party. Moreover in the consolidation, the gain or loss will be eliminated.

The journal entry made by B to record sale of equipment 20X6.

b

To determine

Concept introduction:

Intercompany transfers: When the intercompany transfer of asset occurs, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by the acquiring company. When the asset is transferred at book value no special adjustments are needed. 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 an unrelated party. Moreover in the consolidation, the gain or loss will be eliminated.

The elimination entries for intercompany transfer of land and equipment for consolidated financial statements for 20X7.

c

To determine

Intercompany transfers: When the intercompany transfer of asset occurs, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by the acquiring company. When the asset is transferred at book value no special adjustments are needed. 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 an unrelated party. Moreover in the consolidation, the gain or loss will be eliminated.

The subsidiaries reported net income 20X7

d

To determine

Concept introduction:

Intercompany transfers: When the intercompany transfer of asset occurs, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by the acquiring company. When the asset is transferred at book value no special adjustments are needed. 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 an unrelated party. Moreover in the consolidation, the gain or loss will be eliminated.

The B’s income from its own operation excluding investments for 20X7.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 7, Problem 7.30P

a

To determine

Concept introduction:

Intercompany transfers: When the intercompany transfer of asset occurs, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by the acquiring company. When the asset is transferred at book value no special adjustments are needed. 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 an unrelated party. Moreover in the consolidation, the gain or loss will be eliminated.

The journal entry made by B to record sale of equipment 20X6.

b

To determine

Concept introduction:

Intercompany transfers: When the intercompany transfer of asset occurs, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by the acquiring company. When the asset is transferred at book value no special adjustments are needed. 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 an unrelated party. Moreover in the consolidation, the gain or loss will be eliminated.

The elimination entries for intercompany transfer of land and equipment for consolidated financial statements for 20X7.

c

To determine

Intercompany transfers: When the intercompany transfer of asset occurs, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by the acquiring company. When the asset is transferred at book value no special adjustments are needed. 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 an unrelated party. Moreover in the consolidation, the gain or loss will be eliminated.

The subsidiaries reported net income 20X7

d

To determine

Concept introduction:

Intercompany transfers: When the intercompany transfer of asset occurs, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by the acquiring company. When the asset is transferred at book value no special adjustments are needed. 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 an unrelated party. Moreover in the consolidation, the gain or loss will be eliminated.

The B’s income from its own operation excluding investments for 20X7.

Answer 6

Chapter 7, Problem 7.30P

a

To determine

Concept introduction:

Intercompany transfers: When the intercompany transfer of asset occurs, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by the acquiring company. When the asset is transferred at book value no special adjustments are needed. 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 an unrelated party. Moreover in the consolidation, the gain or loss will be eliminated.

The journal entry made by B to record sale of equipment 20X6.

Answer 7

Chapter 7, Problem 7.30P

a

To determine

Concept introduction:

Intercompany transfers: When the intercompany transfer of asset occurs, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by the acquiring company. When the asset is transferred at book value no special adjustments are needed. 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 an unrelated party. Moreover in the consolidation, the gain or loss will be eliminated.

The journal entry made by B to record sale of equipment 20X6.

Answer 8

b

To determine

Concept introduction:

Intercompany transfers: When the intercompany transfer of asset occurs, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by the acquiring company. When the asset is transferred at book value no special adjustments are needed. 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 an unrelated party. Moreover in the consolidation, the gain or loss will be eliminated.

The elimination entries for intercompany transfer of land and equipment for consolidated financial statements for 20X7.

Answer 9

b

To determine

Concept introduction:

Intercompany transfers: When the intercompany transfer of asset occurs, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by the acquiring company. When the asset is transferred at book value no special adjustments are needed. 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 an unrelated party. Moreover in the consolidation, the gain or loss will be eliminated.

The elimination entries for intercompany transfer of land and equipment for consolidated financial statements for 20X7.

Answer 10

c

To determine

Intercompany transfers: When the intercompany transfer of asset occurs, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by the acquiring company. When the asset is transferred at book value no special adjustments are needed. 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 an unrelated party. Moreover in the consolidation, the gain or loss will be eliminated.

The subsidiaries reported net income 20X7

Answer 11

c

To determine

Intercompany transfers: When the intercompany transfer of asset occurs, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by the acquiring company. When the asset is transferred at book value no special adjustments are needed. 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 an unrelated party. Moreover in the consolidation, the gain or loss will be eliminated.

The subsidiaries reported net income 20X7

Answer 12

d

To determine

Concept introduction:

Intercompany transfers: When the intercompany transfer of asset occurs, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by the acquiring company. When the asset is transferred at book value no special adjustments are needed. 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 an unrelated party. Moreover in the consolidation, the gain or loss will be eliminated.

The B’s income from its own operation excluding investments for 20X7.

Answer 13

d

To determine

Concept introduction:

Intercompany transfers: When the intercompany transfer of asset occurs, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by the acquiring company. When the asset is transferred at book value no special adjustments are needed. 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 an unrelated party. Moreover in the consolidation, the gain or loss will be eliminated.

The B’s income from its own operation excluding investments for 20X7.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 17

Ch. 7 - Prob. 7.1Q Ch. 7 - Prob. 7.2Q Ch. 7 - Prob. 7.3Q Ch. 7 - Prob. 7.4Q Ch. 7 - Prob. 7.5Q Ch. 7 - Prob. 7.6Q Ch. 7 - Prob. 7.7Q Ch. 7 - Prob. 7.8Q Ch. 7 - Prob. 7.9Q Ch. 7 - Prob. 7.10Q

Solution Summary: The author explains that the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by the acquiring company.

Concept explainers

Want to see the full answer?

Chapter 7 Solutions