Acctg501 F16 Advanced Financial Accounting sosu 19 parent company sells to a company during 2015 as a during subsidiary outside The subsidiary company sells all the 2015 for s1.250.000. The always Which statement is mre concerming the required consolidation eliminating entries related to entries are required because the merchandise has been sold to outside customers by the end of the increase in cost of goods sold ofs 25oooto entries will include an 000,000 to b. gross margin. in sales revenue of si c. remove unrealized a reduction S200.000 to temove eliminating entries of remove sales. a reduction in inventory d. The eliminating entries will merchandise sales. markup on the of the above. than one 20. parent provides administrative services to its subsidiary during 2014. which the subsidiary records as an expense. The services cost the parent S100,000 and the parent charged the On the consol working paper, what entry is subsidiary a. none, since there is no ending inventory of services. S125,000. Investment in b, debit service revenue credit service expense S100.000, credit c, debit service revenue $125,000, credit service expense Subsidiary S25,000. d, debit service revenue S100,000, credit service expense S100,000. cost. In e. More than one of the above. its the 2014 21. A parent company sells land to its subsidiary in 2011 at an amount above In three years later, the subsidiary sells the land to an outside developer. a(n) consolidation working paper, the elimination of this transaction will result in in land b. increase in retained earnings. c. increase in gain on sale of land. of d. decrease in gain on sale of land. intercompany sales than one of the above. entries required for e. ing the eliminating land to 22. Which statement is true parent sells the land from a subsidiary to its parent? parent in 2013 and the 2014 a. the subsidiary sold the land to its required in 2014. for outsiders 2014, no entries are the eliminating entries outsiders b. If the subsidiary sells the land its parent in 2014, earnings balance. include an adjustment to the subsidiary's beginning retained to c. If the subsidiary sold the land to its parent in 2012, and the land was sold by the 2012, no eliminating entries are required in 2012. than the d. the subsidiary sells the land parent in 2014 at a price that is less land's carry subsidiary's book value, the eliminating entry for 2014 will reduce the value. above e. None of the