On January 1, 20X3, Sub Ltd., 80%-owned by Par Ltd., sold a building to Par Ltd. for

Question:

On January 1, 20X3, Sub Ltd., 80%-owned by Par Ltd., sold a building to Par Ltd. for $1,980,000. The building cost Sub $800,000 and was 70% depreciated (at 5% per year). Par will depreciate the building over the six remaining years, straight-line.

Required

Give the consolidation eliminations required in relation to this transaction for the years ended

a. 20X3;

b. 20X5.

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

Step by Step Answer:

Related Book For book-img-for-question

Advanced Financial Accounting

ISBN: 978-0132928939

7th edition

Authors: Thomas H. Beechy, V. Umashanker Trivedi, Kenneth E. MacAulay

See More Books

Question Posted: May 24, 2018 09:32 AM

See More Questions

Plain Ltd. acquired 100% of the voting shares of Stylish Ltd. on January 1, 20X3, for $1,500,000. The financial statement of Stylish Ltd. on the date of acquisition was as follows: The inventory will...
On January 1, 20X3, PURE Products Corporation issued 12,000 shares of its $10 par value stock to acquire the net assets of Light Steel Company. Underlying book value and fair value information for...
On January 1, 20X3, Guild Corporation reported total assets of $470,000, liabilities of $270,000, and stockholders equity of $200,000. At that date, Bristol Corporation reported total assets of...
A cellphone postpaid plan costs 250 per month with unlimited calls to all networks, 150 text messages per month, and no data plan. After 150 text messages, it costs 0.75 for each text message you...
1. Which gender does the university appear to be favoring? 2. What is the probability that a male applicant was accepted to law school? A female applicant 3. What is the probability that a male...
What are the general rules for achieving harmony with text on a map?
locate process-oriented change research within the literature; and
15. Suppose a small economy has two income tax rates: 15% for all income up to $50,000 and 30% for any income earned above $50,000. Suppose that prior to the recession, the economy had five workers...
Question 4 The following information pertains to Cullumber Company. 1. 2. 3. 4. 5. Cash balance per books, August 31, $7,374. Cash balance per bank, August 31, $7,338. Outstanding checks, August 31,...
A petfood company wants to prioritize in its most popular petfood products and get rid of some "slow moving products" to increase its production line utilization. 12 months data was collected for...
Parent Corp. owns 70% of the voting shares of Sub Ltd. During 20X4, Sub Ltd. sold inventory costing $640,000 to Parent Corp. for $800,000. At December 31, 20X4, Parent Corp. still had $400,000 of...
Dudes Outfitters Ltd. is a 70%-owned subsidiary of Trail Ltd. On January 10, 20X2, Dudes sold some display cases to Trail Ltd. for $95,000, recognizing a gain of $48,000 before tax on the...
What C R is obtainable using two mixed flow reactors, each of volume V m = 1, for a feed rate . . . v = 3
Machine cost = $15,000; life = 8 years; salvage value = $3,000. What minimum cash return would an investor demand annually from the operation of this machine if he desires interest annually at the...
Write a program that prompts for the student's name, the number of exams, the exam score of each exam, and display the letter grade for the student. Read the entire problem description before coding....
Considering only the vertical stabilizer and rudder, explain the aerodynamic forces and moments that are created. You must include at least applicable airfoil terminology, description of force...
part. Review A bicycle wheel is rotating at 47 rpm when the cyclist begins to pedal harder, giving the wheel a constant angular acceleration of 0.44 rad/s. Part B How many revolutions does the wheel...
Suppose the number of students who register for a certain class each semester can be modeled by a Poisson distribution with average 10. Suppose further that each student passes the class with...
Find the domain of the following functions. If possible, give a description of the domains (for example, all points outside a sphere of radius 1 centered at the origin). f(x, y, z)= Vy - z
What is a content filter? Where is it placed in the network to gain the best result for the organization?
Trim Corporation acquired 100 percent of Round Corporations voting common stock on January 1, 20X2, for $400,000. At that date, the book values and fair values of Rounds assets and liabilities were...
Trim Corporation acquired 100 percent of Round Corporations voting common stock on January 1, 20X2, for $400,000. At that date, the book values and fair values of Rounds assets and liabilities were...
Amber Corporation reported the following summarized balance sheet data on December 31, 20X6: On January 1, 20X7, Purple Company acquired 100 percent of Ambers stock for $500,000. At the acquisition...
Sociology
I am unsure how to answer question e as there are two variable changes. In each of the following, you are given two options with selected parameters. In each case, assume the risk-free rate is 6% and...
On January 1, Interworks paid a contractor to construct a new cell tower at a cost of $850,000. The tower had an estimated useful life of ten years and a salvage value of $100,000. Interworks...

On January 1, 20X3, Sub Ltd., 80%-owned by Par Ltd., sold a building to Par Ltd. for

Question:

Step by Step Answer:

a 20X3 Gain on sale of building 1740000 Accumulated depreciation 560000 Buildings 1180000 Eliminates ...View the full answer

Advanced Financial Accounting

Students also viewed these Business questions