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rubyyak36Lv1
28 Sep 2019
100% Ownership Land Transfer (Non-Depreciable) ⢠On 3/31/X5,Parker Inc. sold land costing $40,000 to its 100% owned subsidiary,Stubben Inc., for $100,000.
⢠In this example, weâll do consolidation worksheet entrieswithout adjusting the equity method accounts.
⢠This is the modified equity method.
⢠This is meant to be a conceptual exercise only. (We willswitch to the fully adjusted equity method next.)
Required:
1. Prepare the consolidation entry(ies) as of 12/31/X5 and12/31/X6.
2. Prepare the consolidation entry at 12/31/X7, assuming thatStubben sold the land in 20X7 for $120,000.
100% Ownership Land Transfer (Non-Depreciable) ⢠On 3/31/X5,Parker Inc. sold land costing $40,000 to its 100% owned subsidiary,Stubben Inc., for $100,000.
⢠In this example, weâll do consolidation worksheet entrieswithout adjusting the equity method accounts.
⢠This is the modified equity method.
⢠This is meant to be a conceptual exercise only. (We willswitch to the fully adjusted equity method next.)
Required:
1. Prepare the consolidation entry(ies) as of 12/31/X5 and12/31/X6.
2. Prepare the consolidation entry at 12/31/X7, assuming thatStubben sold the land in 20X7 for $120,000.
Deanna HettingerLv2
28 Sep 2019