Question: When there has been an intercompany sale of a used
When there has been an intercompany sale of a used depreciable asset (i.e., accumulated depreciation has been recorded for this asset), it is necessary to gross up the asset and accumulated depreciation when preparing the consolidated financial statement. Explain what is meant by grossing up the asset and accumulated depreciation and why this action is necessary.
Relevant QuestionsWhen a company sells equipment that had previously been remeasured to fair value under the revaluation model of IAS 16, it transfers the revaluation surplus from accumulated other comprehensive income directly to retained ...Stephanie Baker is an audit senior with the public accounting firm of Wilson & Lang. It is February Year 9, and the audit of Canadian Development Limited (CDL) for the year ended December 31, Year 8, is proceeding. Stephanie ...On December 31, Year 1, RAV Company purchased 60% of the outstanding common shares of ENS Company for $780,000. On that date, ENS had common shares of $500,000 and retained earnings of $120,000. In negotiating the purchase ...On December 31, Year 2, HABS Inc. sold equipment to NORD at its fair value of $2,000,000 and recorded a gain of $500,000. This was HABS's only income (other than any investment income from NORD) during the year. NORD ...The shareholders’ equity of a subsidiary company contains preferred and common shares. The parent company owns 100% of the subsidiary’s common shares. Will the consolidated financial statements show non-controlling ...
Post your question