2023110407

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School
Nipissing University **We aren't endorsed by this school
Course
ACCT 4866
Subject
Accounting
Date
Nov 4, 2023
Pages
1
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1. City Properties Inc., a construction company, owns 70% of Town Developers Corp.'s common shares. On January 1, 20X2, Town Developers purchased land from a nonaffiliate for $100,000. It sold this land to City Properties for $120,000 during 20X2. City Properties sold this land on December 31, 20X3 for $125,000 to a nonaffiliate. The unrealized gain attributable to the non- controlling interest in 20X2 is 20000 * 0.3=6000 2. In recording the consolidation journal entry to eliminate the unrealized gain on an upstream sale of land, Land is ___ credited__ 3. Which of the following accounts is debited as part of the reversal of previously deferred gross profit consolidation entry? Parent Company's Investment in Subsidiary 4. On January 1,20X1, Dubnium Corp. sold inventory costing $20,000 to its subsidiary, Bohrium Inc., for $22,000. Bohrium Inc. sold the inventory to a non-associate for $25,000. Which of the following consolidation entries would eliminate the gross profit on this intercompany inventory transfer? Debit Sales by $22,000; Credit Cost of Goods Sold by $22,000 Chapter 7: Depreciable assets 1. Trident Corp. purchased equipment costing $20,000 from a non-associate on January 1, 20X1. On January 1, 20X4, Trident sold the equipment to its parent company, Rident Inc., for $15,000. The estimated useful life of the equipment is 10 years. The group of companies has adopted the straight- line depreciation method. In Trident's books, which of the following is true of the journal entry to record the sale of the upstream sale of equipment? (select all that apply) Gain on Sale of Equipment would be credited by $1,000. Cash would be debited by $15,000. Accumulated Depreciation would be debited by $6,000. Equipment would be credited by $20,000.
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