Problem regarding unaffiliated firm

Assignment Help Accounting Basics
Reference no: EM13132099

In 2004, Parrot Company sold land to its subsidiary, Tree Corporation, for $12,000. It had a book value of $10,000. In the next year, Tree sold the land for $18,000 to an unaffiliated firm. Which of the following is correct?

A-No consolidation working paper entry was necessary in 2004.

B-A consolidation working paper entry was required only if the subsidiary was less than 100% owned in 2004.

C-A consolidation working paper entry is required each year until the land is sold outside the related parties.

D-A consolidated working paper entry was required only if the land was held for resale in 2004.

Reference no: EM13132099

Questions Cloud

The hybridization of the nitrogen atom in sulfathiazole : What is the hybridization of the nitrogen atom in sulfathiazole? Assuming that the sulfur atom is sp2-hybridized, how many -electrons are there in the sulfathiazole ring?
What is the limiting reactant : if 88.6L of H2 measured at STP is allowed to react with 158.3g of P4, what is the limiting reactant?
Explain how much amortization expense will be on consolidate : The building had a 10-year remaining useful life and the equipment had a 5-year remaining useful life. Explain how much amortization expense will be on the consolidated financial statements for the year ended on December 31, 2009 related to the ac..
Compute the standard deviation using rule of thumb : For the following exercise, complete the following: Find the mean, median, and range for each of the two data sets. Find the standard deviation using the rule of thumb for each of the data sets.
Problem regarding unaffiliated firm : In 2004, Parrot Company sold land to its subsidiary, Tree Corporation, for $12,000. It had a book value of $10,000. In the next year, Tree sold the land for $18,000 to an unaffiliated firm. Which of the following is correct?
What are some of the accounting estimates that research : What are some of the accounting estimates that Research in Motion made in preparing its financial statements? What are some of the effects if the company’s actual results differ from its estimates?
What is the amount to be capitalized as the cost : The cash equivalent price of the machine was $36,000. Hayes incurred and paid installation costs amounting to $1,500. What is the amount to be capitalized as the cost of the machine?
Alcohols are less volatile than ethers of the same : Alcohols are less volatile than ethers of the same molecular weight, but the two classes of compounds have approximately the same solubility in water because:
Which scatter plot-graph of least squares regression line : His least squares regression line equation is: "assembly line output" = 1.03 + (5.1389 x Test Score). Which scatter plot has the graph of his line?

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Problem regarding transactions

During the year, Ruby corporation, a calendar year taxpayer, has the following transactions:

  How would you allocate the cost of a dinner among a group

Shifting the focus slightly, think about this. How would you allocate the cost of a dinner among a group of your friends when you go out for an evening?

  What controls should an organization

What controls should an organization like Tyco implement to ensure that such transactions do not take place in the future?

  Problem regarding partnership

Barry owns a 30% interest in a partnership that earned $300,000 this year. He also owns 30% of the stock in a C corporation that earned $300,000 during the year.

  Diff between evidence in a legal case and evidence in audit

How do management's responsibilities and the auditors' responsibilities differ in terms of the financial statements presented?

  Partnership interest after distribution

(1) inventory with a basis of $15,000 and a fair market value of $13,000, and (2) land with a basis of 5000 and fair market value of $20,000. What are Amy's bases in the land and her partnership interest after distribution?

  Company accounts receivable balance

What is Farr Company's accounts receivable balance at December 31, 2010?

  Units of production for conversion costs

All materials are added at the beginning of the process. The first-in, first-out method is used to cost inventories. The number of equivalent units of production for conversion costs for the period was:

  Explain how a sale would be generally treated

If economic depreciation refers to diminution in value because of obsolescence, physical wear and tear, technological advances in substitute goods, or changes in consumption behavior.

  Description of gaap

What is the purpose of GAAP and management accounting? There is a very important distinction that we need to keep in mind when discussing accounting because... they are not the same

  Problem regarding budgeted net income

The Adams Company, a merchandising firm, has budgeted its activity for November according to the following information:

  Capital loss pass-through

This year the trust is terminated. Albert has a 40% interest in the trust, and Barbara has a 60% interest. Barbara receives a capital loss pass-through of:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd