A Company owns 90% of B Company. A uses the equity method to account for its investment. On the date of acquisition, The net book value of B was equal to the fair value of B.

A has $45,000 of separate company net income for 20X8. This does not include any equity income from B.

At the end of 20X8 A has $50,000 in the land account.

A has $28,000 of separate company net income for 20X8.

At the end of 20X8 B has $123,000 in the land account

1. A sold land to B in 20X8. A recorded a $2,000 gain on this sale.

Required

1) What will be reported as consolidated net income attributable to the parent for 20X8?

2) What is the land balance on the consolidated balance sheet at 12/31/20X8?

Answer rating: 100% (QA)

1 To determine the consolidated net income attributable to the parent for 20X8 we ne... View the full answer