In preparing the consolidation worksheet for Bolger Corporation and its 60 percent owned subsidiary, Feldman Company, the following elimination entries
Bolger's bookkeeper recently graduated from Oddball University, and although the dollar amounts recorded are correct, he had some confusion in determining which accounts needed adjustment. All intercorporate sales in 20X5 were from Feldman to Bolger, and Feldman sells inventory at cost plus 40 percent of cost. Bolger uses the fully adjusted equity method in accounting for its ownership in Feldman.
a. What percentage of the intercompany inventory transfer was resold prior to the end of 20X5?
b. Give the appropriate elimination entries needed at December 31, 20X5, to prepare consolidated financialstatements.
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...
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