Problem

Transfer of LandBowen Corporation owns 70 percent of Roan Corporation’s voting common stoc...

Transfer of Land

Bowen Corporation owns 70 percent of Roan Corporation’s voting common stock. On March 12, 20X2, Roan sold land it had purchased for $140,000 to Bowen for $185,000. Bowen plans to build a new warehouse on the property in 20X3.

Required

 Give the worksheet eliminating entries to remove the effects of the intercompany sale ofland in preparing the consolidated financial statements at December 31, 20X2 and 20X3.

 Give the worksheet eliminating entries needed at December 31, 20X3 and 20X4, if Bowen had initially purchased the land for $150,000 and sold it to Roan on March 12, 20X2, for $180,000.

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