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Big Co . owns 8 0 % of the common stock of Little Co . It was acquired at book value, and all of Little's

Big Co. owns 80% of the common stock of Little Co. It was acquired at book value, and
all of Little's assets and liabilities had fair values equal to book value. On 1/1/23, Little
sold equipment to Big for $30,000. Little had purchased the equipment on 1/1/2020 for
$40,000, and was depreciating is straight-line over an eight year expected useful life with
zero salvage value.
At 11?23 Little had common stock of $50,000 and retained earnings of $100,000. Little
reported earnings of $20,000 in 2023, and paid no dividends.
Required:
Prepare the equity method entries for Big to account for their investment in Little in
Prepare consolidation/elimination entries for 2023 ARISING FROM THIS
TRANSACTION for 2023(i.e., no "basic consolidation entry" or "excess value" entries.
Just the intercompany transaction!)
What is the Non-controlling interest in the NI of Little for 2023?
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