The consolidation process applicable when intra-entity land transfers have occurred differs somewhat from that used for intra-entity inventory sales. What differences should be noted?
Answer to relevant QuestionsA subsidiary sells land to the parent company at a significant gain. The parent holds the land for two years and then sells it to an outside party, also for a gain. How does the business combination account for these events?Bellgrade, Inc., acquired a 60 percent interest in Hansen Company several years ago. During 2011, Hansen sold inventory costing $75,000 to Bellgrade for $100,000. A total of 16 percent of this inventory was not sold to ...What is the consolidated total of non-controlling interest appearing on the balance sheet?a. $85,500.b. $83,100.c. $87,000.d. $70,500.Use the following data for problemOn January 1, Jarel acquired 80 percent of the ...On January 1, 2010, QuickPort Company acquired 90 percent of the outstanding voting stock of NetSpeed, Inc., for $810,000 in cash and stock options. At the acquisition date, NetSpeed had Common Stock of $800,000 and Retained ...On January 1, 2010, Woods, Inc., acquired a 60 percent interest in the common stock of Scott, Inc., for $672,000. Scott’s book value on that date consisted of common stock of $100,000 and retained earnings of $220,000. ...
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