On January 1, 2018, Phili Corporation acquired 90 percent of shares in Shili Corporation for $ 351,000,000,
Question:
Additional information:
1. On July 1, 2018, Priya sold the machine with a book value of IDR 35,000,000 to Sunil at a price of IDR 43,570,000. The remaining useful life of the machines was 3.5 (three and a half) years at the time of sale, using the straight-line depreciation method.
2. During 2019, Priya sold the land with a book value of $ 18,750,000 to Sunil for $ 25,000,000
3. Priya's trade receivables as of December 31, 2019, including $ 12,500,000 from Sunil.
4. Priya sold supplies to Sunil for $ 75,000,000 during 2019 and $ 90,000,000 during 2019.
5. Sunil's inventory as of December 31, 2018 and 2019, including unrealized profit of $ 12,500,000 and $ 15,000,000, respectively
6. Priya uses the equity method for 90% of her ownership in Sunil.
Requested:
1. Prepare an elimination and adjusting entry as of December 31, 2019
2. Prepare working papers for Priya and her subsidiaries for the year ended 31 December 2019
Advanced Accounting
ISBN: 978-1934319307
2nd edition
Authors: Susan S. Hamlen, Ronald J. Huefner, James A. Largay III