ZuoTi.Pro
Question

P Company owns 90% of the outstanding common stock of S Company. On January 1, 2015,...

P Company owns 90% of the outstanding common stock of S Company. On January 1, 2015, S Company sold land to P Company for $566,500. S Company originally purchased the land for $414,900.

On January 1, 2016, P Company sold the land purchased from S Company to a company outside the affiliated group for $666,100.

Calculate the amount of gain on the sale of the land that is recognized on the books of P Company in 2016.
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1
Sale of land by P to S Company $666,100
Cost of purchase of land by P company ($566,500)
Gain on the sale recognized on the books of P Company $99,600
0 0
Add a comment
Know the answer?
Add Answer to:
P Company owns 90% of the outstanding common stock of S Company. On January 1, 2015,...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • EXERCISE 7-6 Calculating Gain on Sale LO 9 P Company owns 90% of the outstanding common...

    EXERCISE 7-6 Calculating Gain on Sale LO 9 P Company owns 90% of the outstanding common stock of S Company. On January 1, 2020, S Company sold land to P Company for $600,000. S Company originally purchased the land for $400,000. On January 1, 2021, P Company sold the land purchased from S Company to a company outside the affiliated group for $700,000. Required: A. Calculate the amount of gain on the sale of the land that is recognized on...

  • Emron Company owns a 100% interest in the common stock of the Dietz Company. On January...

    Emron Company owns a 100% interest in the common stock of the Dietz Company. On January 1, 2016, Emron sold Dietz a fixed asset that Dietz will use over a 5-year period. The asset was sold at a $5,000 profit. In the consolidated statements, this profit will a. not be recorded. b. be recognized over 5 years. c. be recognized in the year of sale. d. be recognized when the asset is resold to outside parties at the end of...

  • 10) P Company purchased 90% of the outstanding common stock of S Company on January 1,...

    10) P Company purchased 90% of the outstanding common stock of S Company on January 1, 2013 . S Company’s stockholders’ equity at various dates was: 1/1/13 1/1/17 12/31/17 Common stock $400,000 $400,000 $400,000 Retained earnings 120,000 380,000 460,000 Total $520,000 $780,000 $860,000 The workpaper entry to establish reciprocity under the cost method in the preparation of a consolidated statements workpaper on December 31, 2017 should include a credit to P Company’s retained earnings of: a) $80,000. b) $234,000. c)...

  • On January 1, 2015, P Company purchased equipment from its 80% owned subsidiary for $614,400. The...

    On January 1, 2015, P Company purchased equipment from its 80% owned subsidiary for $614,400. The carrying value of the equipment on the books of S Company was $460,800. The equipment had a remaining useful life of six years on January 1, 2015. On January 1, 2016, P Company sold the equipment to an outside party for $565,600. Prepare in general journal form the entries necessary in 2015 and 2016 on the books of P Company to account for the...

  • 5. On January 1, 2019, P acquired all of the outstanding common stock of S for $1,000,000. On the...

    need the answer to Part B only 5. On January 1, 2019, P acquired all of the outstanding common stock of S for $1,000,000. On the date of acquisition, the book value and fair market value of S's assets and liabilities were as follows: Book Value 200,000 300,000 160,000 340,000 Fair Market Value 300,000 500,000 Land Patent (10 yrs) Common Stock Retained Earnings a) Assuming that S uses push-down accounting, prepare the elimination entries as of 1/1/19. b) If P...

  • On January 1, 2015, P Company acquired a 90% interest in S Company. During 2016, S...

    On January 1, 2015, P Company acquired a 90% interest in S Company. During 2016, S Company sold merchandise to P Company at 25% above cost in the amount (selling price) of $241,800. At the end of the year, P Company had in its inventory one-third of the amount of goods purchased from S Company. On January 1, 2016, P Company sold equipment that had a book value of $83,600 to S Company for $118,100. The equipment had an estimated...

  • On January 1, 2015, P Company acquired a 90% interest in S Company. During 2016, S...

    On January 1, 2015, P Company acquired a 90% interest in S Company. During 2016, S Company sold merchandise to P Company at 25% above cost in the amount (selling price) of $208,800. At the end of the year, P Company had in its inventory one-third of the amount of goods purchased from S Company. On January 1, 2016, P Company sold equipment that had a book value of $75,500 to S Company for $131,700. The equipment had an estimated...

  • Exercise 7-8 On January 1, 2015, P Company acquired a 90% interest in S Company. During...

    Exercise 7-8 On January 1, 2015, P Company acquired a 90% interest in S Company. During 2016, S Company sold merchandise to P Company at 25% above cost in the amount (selling price) of $241,800. At the end of the year, P Company had in its inventory one-third of the amount of goods purchased from S Company. On January 1, 2016, P Company sold equipment that had a book value of $83,600 to S Company for $118,100. The equipment had...

  • On January 1, 20X7, P Company acquired 60 percent of the outstanding common stock of S...

    On January 1, 20X7, P Company acquired 60 percent of the outstanding common stock of S Company at the book value of the shares acquired. On that date, the fair value of noncontrolling interest was equal to 40 percent of book value of S. At the time of purchase, S had common stock of $1,000,000 outstanding and retained earnings of $800,000. On December 31, 20X7, P purchased 50 percent of S's bonds outstanding which were originally issued on January 1,...

  • On January 1, 20X7, P Company acquired 60 percent of the outstanding common stock of S...

    On January 1, 20X7, P Company acquired 60 percent of the outstanding common stock of S Company at the book value of the shares acquired. On that date, the fair value of noncontrolling interest was equal to 40 percent of book value of S. At the time of purchase, S had common stock of $1,000,000 outstanding and retained earnings of $800,000. On December 31, 20X7, P purchased 50 percent of S's bonds outstanding which were originally issued on January 1,...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT