On January 1, 2011, Alpha acquired 80 percent of Delta. Of Delta's total business fair value, $125,000
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Delta has made numerous inventory transfers to Alpha since the business combination was formed. Unrealized gross profits of $15,000 were present in Alpha's inventory as of January 1, 2013. During the year, $200,000 in additional intra-entity sales were made with $22,000 in gross profits remaining unrealized at the end of the period.
Both Alpha and Delta utilized the partial equity method to account for their investment balances.
Following are the individual financial statements for the companies for 2013 with consolidated totals. Develop the worksheet entries necessary to derive these reported balances:
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Related Book For
Advanced Accounting
ISBN: 978-0078025402
11th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
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