An intercompany gain on the sale of land is eliminated in the preparation of the consolidated statements

Question:

An intercompany gain on the sale of land is eliminated in the preparation of the consolidated statements in the year that the gain was recorded. Will this gain be eliminated in the preparation of subsequent consolidated statements? Explain.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Modern Advanced Accounting In Canada

ISBN: 9781259066481

7th Edition

Authors: Hilton Murray, Herauf Darrell

See More Books

Question Posted: Jun 08, 2015 07:15 AM

See More Questions

An intercompany gain on a depreciable asset resulting from a sale by the parent company is subsequently realized by an adjustment to the subsidiary's depreciation expense in the preparation of...
The exclusion of gain on the sale of a residence applies to only one sale every two years. The taxpayer is always ineligible for the exclusion if, during the two-year period ending on the date of...
Sahan Companys T account for long-term available-for-sale investments at the end of 2014 follow. In addition, Sahans income statement shows a loss on the sale of investments of $26,000. Compute the...
What is the asset-liability time mismatch that all banks face?
Parent Corporation has been in the business of manufacturing and selling trucks for the past eight years. Its subsidiary, Diesel Corporation, has been in the business of manufacturing and selling...
On January 1, 2017, West Co. exchanged equipment for an $700,000 zero-interest-bearing note due on January 1, 2020. The prevailing rate of interest for a note of this type at January 1, 2017 was 10%....
Which of the following items is include in cost accounts? (a) Notional profit (b) Rent receivable (c) Transfer to general reserve (d) None of these
Calculate financial leverage measures. The following information was available for the year ended December 31, 2013: Earnings before interest and taxes (operating income) ....... $60,000 Interest...
ABC Company uses a job order costing system and had three jobs in process at the beginning of the month. The beginning balance in the WIP account was $145,400, made up of $42,400, $65,100, and...
Vimal Auto Vimal Auto has been in business since 1990 in Brampton. It has always been a successful, professional organization. Since the locality has an economy based mainly upon manufacturing and...
When there are unrealized profits in inventory at the end of Year 1, consolidated profit would normally be affected for Years 1 and 2. Explain.
A subsidiary periodically revalues its land to fair value under the revaluation option for property, plant, and equipment. Explain the adjustments required to the consolidated financial statements if...
Use the Fundamental Theorem to evaluate the definite integral exactly. (12 (12x + 1) dx
Factor completely. x10 2x5 +1
Which of the three essential financial statements is most important for your business for the feasibility plan? Explain your answer.
Module 05 Content Background Having a comprehensive understanding of curriculum models and approaches to early childhood education can give you an appreciation of the many options available to...
- 7 ( 3 x - 2 ) 2 find the derivative
The Reciprocal Method Solve the Simultaneous Equations: S1=170,000+(0.2*S2) S2=68,000+(0.2*S1) S1=170,000+[0.2*(68,000+0.2*S1)]
Prove that for $n p q \geqslant 25$ \[P_{n}(m)=\frac{1}{\sqrt{2 n p q}} e^{-\frac{z^{2}}{2}}\left[1+\frac{(q-p)\left(z^{3}-3 z ight)}{6 \sqrt{n p q}} ight]+\Delta\] where \[z=\frac{m-n p}{\sqrt{n p...
Time Travel Publishing was recently organized. The company issued common stock to an attorney who provided legal services worth $25,000 to help organize the corporation. Time Travel also issued...
The slider-crank mechanism of Sample Problem 5/9 is repeated here. The crank $O B$ has a constant clockwise angular speed of $1500 \mathrm{rev} / \mathrm{min}$. For the instant when the crank...
To what extent does push-down accounting facilitate the consolidation process?
To what extent does push-down accounting facilitate the consolidation process?
What is a joint venture and how are joint ventures organized?
explain the concept of Time Value of Money and provide and example. In addition to your discussion, please explain the differences between Stocks and Bonds
Wildhorse Inc. has just paid a dividend of $3.80. An analyst forecasts annual dividend growth of 9 percent for the next five years; then dividends will decrease by 1 percent per year in perpetuity....
Jenny wanted to donate to her alma mater to set up a fund for student scholarships. If she would like to fund an annual scholarship in the amount of $6,000 and her donation can earn 5% interest per...

An intercompany gain on the sale of land is eliminated in the preparation of the consolidated statements

Question:

Step by Step Answer:

It will not be eliminated again on the consolidated income statement ...View the full answer

Modern Advanced Accounting In Canada

Students also viewed these Accounting questions