100% Ownership Land Transfer (Non-Depreciable) On 3/31/X5, Parker Inc. sold land costing $40,000 to its 100% owned subsidiary, Stubben Inc., for $100,000.

In this example, well do consolidation worksheet entries without adjusting the equity method accounts.

This is the modified equity method.

This is meant to be a conceptual exercise only. (We will switch to the fully adjusted equity method next.)

Required:

1. Prepare the consolidation entry(ies) as of 12/31/X5 and 12/31/X6.

2. Prepare the consolidation entry at 12/31/X7, assuming that Stubben sold the land in 20X7 for $120,000.