For each of the following intercompany transactions, briefly state the principles/procedures to be used in accounting fo the transactions in the current and future consolidated financial statement. Your answers should include when (or what event triggers) the company would recognize the item, what eliminations would be required for the intercompany transactions, and any related accounting (briefly stated, no journal entries required). 1. Profit on merchandise sales. 2. Gains on the sale of land. 3. Gains on the sale of depreciable assets. 4. Interest on intercompany notes (loans). 5. Subsidiary bonds repurchased from the market by the parent. Please include 1. the worksheet (and worksheet key, such as CV, D, B1,etc.) 2. determination and distribution of excess schedule

Answer rating: 100% (QA)

1 Profit on merchandise sales Since it is a sale of their inventory even though it has been sold to intercompany but still after sale it recognize the ... View the full answer