During the year, Lydia Inc. rented a piece of manufacturing equipment to Mizer Inc. for $12,000 and
Question:
During the year, Lydia Inc. rented a piece of manufacturing equipment to Mizer Inc. for $12,000 and the rent charge has all been paid for in full. Lydia Inc. and Mizer Inc. are related companies subject to consolidation. The elimination entry at the time of consolidation for this transaction would be:
Question 17 options:
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On 1/1/19, Casey Co. sold inventory to Lemon, Inc. for $100,000 cash that had a cost of $40,000. Lemon, Inc. subsequently sold half that inventory during the year at a sales price of $300,000 to unrelated third parties. Casey Co. and Lemon, Inc. are related companies subject to consolidation. The portion of the elimination entry at the time of consolidation to account for any required adjustment to the cost of goods sold account would be:
Question 18 options:
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Essentials of Corporate Finance
ISBN: 978-1259277214
9th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan