Homework Answers
a. Parent record gain of $ 140000- $ 100000 = $ 40,000
b. $ 140,000
c. Nil as in conslidated account inter-company gain and loss during the year is set off agaisnt each other.
d. Subsidicary record net gain of $ 20,000 in subsidiary records.
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Chapter 5 Homework ry 1, 2009 for $100,000. On January 1, 2010 parent sells land to...
3-During 2020, Parent sells land to Subsidiary for $226,800. The land had a book value of...
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A parent company sells land to its wholly-owned subsidiary in 2015, reporting a gain of $35,000....
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question 2 Question 5 2-On Jan 2, 2020, Parent sells to its wholly owned investee equipment...
question 2
Question 5
2-On Jan 2, 2020, Parent sells to its wholly owned investee equipment that had cost $250,000. The selling price was $180,000 and accumulated depreciation on that date was $75,000. The subsidiary depreciates the equipment over its remaining life of 10 years. Required: a. Compute the difference between the annual depreciation expense when Parent owned the equipment and depreciation expense recorded by the subsidiary. b. Compute the gain on sale recorded by the parent. c. Prepare the...
On January 2, 2019, a parent sells a building with original cost of $100,000 and accumulated...
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If a company sells a depreciable asset to its subsidiary at a profit on December 31,...
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Prepare consolidation spreadsheet for intercompany sale of land - Equity method Assume that a parent company acquired i...
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3-During 2020, Parent sells land to Subsidiary for $226,800. The land had a book value of $159,000. The land is then sold to an unaffiliated party for $303,000 in 2024. Required: a. Prepare the consolidation entry related to the land sale for 2020. b. Prepare the consolidation entry related to the land sale for 2021. c. Prepare the consolidation entry related to the land for 2024. d. What will be the gain on sale on the 2024 consolidated income statement?...
question 2
Question 5
2-On Jan 2, 2020, Parent sells to its wholly owned investee equipment that had cost $250,000. The selling price was $180,000 and accumulated depreciation on that date was $75,000. The subsidiary depreciates the equipment over its remaining life of 10 years. Required: a. Compute the difference between the annual depreciation expense when Parent owned the equipment and depreciation expense recorded by the subsidiary. b. Compute the gain on sale recorded by the parent. c. Prepare the...
Prepare consolidation spreadsheet for intercompany sale of land - Equity method Assume that a parent company acquired its subsidiary on January 1, 2014, at a purchase price that was $300,000 in excess of the book value of the subsidiary's Stockholders' Equity on the acquisition date. Of that excess, $200,000 was assigned to an unrecorded Patent owned by the subsidiary that is being amortized over a 10-year period. The [A] Patent asset has been amortized as part of the parent's equity...
B.I.G. Corporation sold a plot of undeveloped land to SubCo this
year for $100,000. B.I.G. had acquired the land several years ago
for $40,000. The consolidated return also reflects the operating
results of the parties: B.I.G. generated $130,000 income from
operations, and SubCo produced a $20,000 operating loss.
a. Use the computational worksheet of Exhibit 8.3 to derive the
group members’ separate taxable incomes and the group’s
consolidated taxable income.
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Consolidation spreadsheet for continuous sale of inventory - Equity method Assume that a parent company acquired a subsidiary on January 1, 2010. The purchase price was 500,000 million in excess of the subsidiary's book value of Stockholders' Equity on the acquisition date and that excess was assigned to the following AAP assets Original Original Useful Amount Life (years) AAP Asset Property, plant and equipment (PPE), net Customer list Royalty agreement Goodwill $100,000 185,000 115,000 100,000 $500,000 20 indefinite The AAP...
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