Question
Carlos Corporation owns 70% of Jay Inc.s common stock. On January 1, 20X2, Jay sold land it had purchased for $150,000 to Carlos for $195,000.
Carlos Corporation owns 70% of Jay Inc.s common stock. On January 1, 20X2, Jay sold land it had purchased for $150,000 to Carlos for $195,000.
What adjustment is needed to noncontrolling interest in the net assets of Jay Inc. at the end of 20X3 (HINT: this is the end of the second year of ownership by Carlos)?
| a. | Cr. NCI in NA of Jay 45,000 | |
| b. | Dr. NCI in NA of Jay 40,000 | |
| c. | Dr. NCI in NA of Jay 31,500 | |
| d. | DR. NCI in NA of Jay 13,500 |
What is the gain on the sale that should be eliminated in consolidation?
| a. | $31,500 | |
| b. | $13,500 | |
| c. | $45,000 | |
| d. | $50,000 |
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Auditing ISO Management System
Authors: Dr. RAMESH R LAKHE, Dr. RAKESH L. SHRIVASTAVA, M M NAVEED, KRANTI P DHARKAR, Dr. C M SEDANI
1st Edition
1702203913, 978-1702203913
