A worksheet is being developed to consolidate Williams, Incorporated, and Brown Company. These two organizations have made considerable intra-entity transactions. How would the consolidation process be affected if these transfers were downstream? How would the consolidation process be affected if these transfers were upstream?
Answer to relevant QuestionsKing Company owns a 90 percent interest in the outstanding voting shares of Pawn Company. No excess fair-value amortization resulted from the acquisition. Pawn reports a net income of $110,000 for the current year. ...If a seller makes an intra-entity sale of a depreciable asset at a price above book value, the seller’s beginning Retained Earnings is reduced when preparing each subsequent consolidation. Why does the amount of the ...Wallton Corporation owns 70 percent of the outstanding stock of Hastings, Incorporated. On January 1, 2009, Wallton acquired a building with a 10-year life for $300,000. Wallton anticipated no salvage value, and the building ...On January 1, 2010, Doone Corporation acquired 60 percent of the outstanding voting stock of Rockne Company for $300,000 consideration. At the acquisition date, the fair value of the 40 percent noncontrolling interest was ...Bennett acquired 70 percent of Zeigler on June 30, 2010, for $910,000 in cash. Based on Zeigler’s acquisition-date fair value, an unrecorded intangible of $400,000 was recognized and is being amortized at the rate of ...
Post your question