Question
1. Melville Corp. acquired Sunset Inc. on 1/1/21. Consolidation entries 'S' and 'A' are similar in that: Multiple Choice Both entries record amounts at book
1. Melville Corp. acquired Sunset Inc. on 1/1/21. Consolidation entries 'S' and 'A' are similar in that:
Multiple Choice
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Both entries record amounts at book value of the subsidiary.
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Both entries must eliminate every item debited and credited.
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Both entries are only needed for the consolidation if the parent company has the subsidiary entity dissolved.
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Both entries, although booked at year-end, include amounts which are valued as of the beginning of the year.
2.Meeker owns 70% of Borland. On January 1, 2018 Meeker sells Land which had cost them $60,000 to Borland for $100,000. Borland holds the land until December 31, 2021 when it sells it to third parties for $155,000. How much is the consolidated gain or loss for 2021?
Multiple Choice
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$80,000 loss
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$55,000 gain
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$15,000 loss
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$95,000 gain
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