Question: How does Consolidation Entry * G differ when the intra - entity gross profit resulted from downstream transfers and the parent uses the equity method

How does Consolidation Entry

*

G differ when the intra

-

entity gross profit resulted from downstream transfers and the parent uses the equity method for its investment in its subsidiary? Multiple choice question. There is no difference to Consolidation Entry

*

.

Cost of goods sold of the parent company is debited instead of credited. The Investment in Subsidiary account is debited instead of the parent's Retained Earnings account.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Complete this question by entering your answers in the tabs below. What amounts make up the $604,440 Investment in Brey account balance as of December 31,2021 ? Consolidation Worksheet Entries Note:...

Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2016, in exchange for $531,000 in cash. The subsidiary's stockholders' equity accounts totaled $515,000 and the noncontrolling...

need help on journal entries pleass On January 1, 2019. Alpha acquired 80 percent of Delta. Of Delta's total business fair value, $187,000 was allocated to copyrights with a 20 year remaining life....

5.2 Pitino acquired 90 porcent of Ereys outstanding shares on Januafy 1, 2019, in exchange for 5477000 in cash. The subsidiary/5 stockholders equity accounts totaled $461,000, and the nonconitroling...

2. Prepare Entry *C1 to convert to the equity method for Delta's acquisition. 3. Prepare Entry *C2 to convert to the equity method for Omega's acquisition. 4. Prepare entry S1 to eliminate...

On January 1, 2020, James Company purchased 100 percent of the outstanding voting stock of Nolan, Inc., for $1,000,000 in cash and other consideration. At the purchase date, Nolan had common stock of...

On January 1, 2016, Alpha acquired 80 percent of Delta. Of Delta's total business fair value, $207,000 was allocated to copyrights with a 20-year remaining life. Subsequently, on January 1, 2017,...

NEED CONSOLIDATION WORKSHEET ENTRIES FOR: 1) Entry *G to recognize the intra-entity gross profit in inventory in 2020. 2) Entry *C1 to convert to the equity method for Delta's acquisition 3) Entry...

On January 1, 2019, Alpha acquired 80 percent of Delta. Of Delta's total business fair value, $189,000 was allocated to copyrights with a 20-year remaining life. Subsequently, on January 1, 2020,...

Barclays Bank of London has offered the following exchange rate quotes: 134.64/ and Korean won 13.8374/. What is the cross rate between the Korean won and the British pound?

What factors should be taken into account in deciding whether to use job order costing in any given manufacturing situation?

Item2 2points eBookHintPrintReferences Check my workCheck My Work button is now enabled2 Item 2 Problem 11-18 (Algo) I-mart is a discount optical shop that can fill most prescription orders in around...

In Medical Sociology, we see that African-American males tend to live somewhat shorter lives than their male counterparts in various races. Based on researchers, what are some factors that may...