Beta sold inventory costing $25,500 to Alpha for $42,500 in 2015. Alpha held $8,500 in inventory at
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Beta sold inventory costing $25,500 to Alpha for $42,500 in 2015. Alpha held $8,500 in inventory at the end of 2015. Beta sold inventory costing $21,000 to Alpha in 2016 for $35,000 Alpha held $10,500 in inventory at the end of 2016.
On 1/1/2015 Alpha sold equipment with a book value of $9,000 to Beta for $12,000. The equipment originally cost Alpha $16,000. The equipment has a remaining life of 5 years at 1/1/2015.
- 1.Prepare an allocation of acquisition value at the time of acquisition to determine any excess value.
- 2.Record the equity entries made by Alpha for 2016.
- 3.Prepare the analysis and entries required for the worksheet in 2016.
Related Book For
College Accounting A Contemporary Approach
ISBN: 978-0077639730
3rd edition
Authors: David Haddock, John Price, Michael Farina
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