Bowen Corporation owns 70 percent of Roan Corporations voting common stock. On March 12, 20X2, Roan sold

Question:

Bowen owns 70 percent of Roan Corporation’s voting common stock. On March 12, 20X2, Roan sold land it had purchased for $140,000 to Bowen for $185,000. Bowen plans to build a new warehouse on the property in 20X3.

Required
a. Give the worksheet elimination entries to remove the effects of the intercompany sale of land in preparing the consolidated at December 31, 20X2 and 20X3.
b. Give the worksheet elimination entries needed at December 31, 20X3 and 20X4, if Bowen had initially purchased the land for $150,000 and sold it to Roan on March 12, 20X2, for $180,000.

Financial Statements
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A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...