1.(73 points) Company Big is the parent company of Company Small, we have the following questions to be answered (each question, marked as a, b, c, c, ..., is independent from the others.

a.(5 points) In 2008 Big sold a piece of land to Small for $ 8,000,000. Land was purchase by Big for $6,000,000. By the end of 2008, small sold the land to someone outside the group for $9,000,000. Please write down the adjusting journal entries to reconcile to the group perspective for 2008.

b.(10 points) In 2008 Big sold a piece of land to Small for $ 8,000,000. Land was purchase by Big for $6,000,000. In 2009, small sold the land to someone outside the group for $9,000,000. Please write down the adjusting journal entries to reconcile to the group perspective for 2008 and 2009 separately.

c.(6 points) On 07/01/2008, Big sold a piece of patent to small for $5,000,000. Right before the transaction the patent had book value of $4,000,000. Note the patent had 5 years of useful life left upon the transaction. On 10/01/2008, small sold the patent for $5,500,000 to an outsider, please write down the adjusting journal entries for 2008 regarding the patent.

d.(12 points)) On 07/01/2008, Big sold a piece of patent to small for $5,000,000. Right before the transaction the patent had book value of $4,000,000. Note the patent had 5 years of useful life left upon the transaction. On 04/01/2010, small sold the patent for $5,000,000 to an outsider, please write down the adjusting journal entries regarding the patent for 2008, 2009 and 2010 separately.

e.(20 points) In 2008 Big sold some inventory to Small for $10,000,000 at the cost of $8,000,000, by the end of 2008,Small sold 60% of the batch of inventory to outsider. In 2009 Big sold some other inventory to Small for $9,000,000 at the cost of $7,000,000, by the end of 2009 75% of the batch of inventory was sold to outsider. Please note that Small useFIFO. Please write down the adjusting journal entries for 2008 and 2009 separately.

f.(20 points) In 2008 Big sold some inventory to Small for $10,000,000 at the cost of $8,000,000, by the end of 2008,Small sold 60% of the batch of inventory to outsider. On 01/01/2009, before Small was able to sell any inventory that was bought from Big in 2008, Big sold some other inventory to Small for $9,000,000 at the cost of $7,000,000, by the end of 2009 75% of the batch of inventory was sold to outsider. Please note that Small useLIFO.Please write down the adjusting journal entries for 2008 and 2009 separately.