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Assume that S Company (an that cost S Company Required: 1- 2- 3- 4- 5- owned subsidiary) sells land to P Company for $500,000 80%

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Assume that S Company (an that cost S Company Required: 1- 2- 3- 4- 5- owned subsidiary) sells land to P Company for $500,000 80% $300,000 (an upstream sale of land). Make necessary entries on the books of each affiliate to record the intercompany sales if : Cost Method or Complete Equity Method is used. a)- b)- Complete Equity Method is used. Make necessary Workpaper Entries in the Year of Intercompany Sale. 900,000 Calculate NCI in the Consolidated Net Income if S Company reported an income of that includes the income on sale of land. Calculate the income to be reduced from the income of NonControlling Interest in Consolidated Income. Make necessary Workpaper Entries in the books of P for all SUBSEQUENT years if: a)- Cost Method or Complete Equity Method is used. b)- Complete Equity Method is used. Record the journal entry if the Intercompany Seller had been the Parent Company (Downstream Sale) under the Cost or Partial Equity Method Calculate gain or loss and record Journal Entry and Workpaper Entry if the P Company sold the land to a nonaffiliate for 550,000 a)- Cost Method or Complete Equity Method is used. b)- Complete Equity Method is used. 6- 7- Assume that S Company (an that cost S Company Required: 1- 2- 3- 4- 5- owned subsidiary) sells land to P Company for $500,000 80% $300,000 (an upstream sale of land). Make necessary entries on the books of each affiliate to record the intercompany sales if : Cost Method or Complete Equity Method is used. a)- b)- Complete Equity Method is used. Make necessary Workpaper Entries in the Year of Intercompany Sale. 900,000 Calculate NCI in the Consolidated Net Income if S Company reported an income of that includes the income on sale of land. Calculate the income to be reduced from the income of NonControlling Interest in Consolidated Income. Make necessary Workpaper Entries in the books of P for all SUBSEQUENT years if: a)- Cost Method or Complete Equity Method is used. b)- Complete Equity Method is used. Record the journal entry if the Intercompany Seller had been the Parent Company (Downstream Sale) under the Cost or Partial Equity Method Calculate gain or loss and record Journal Entry and Workpaper Entry if the P Company sold the land to a nonaffiliate for 550,000 a)- Cost Method or Complete Equity Method is used. b)- Complete Equity Method is used. 6- 7

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