From Advanced Accounting - Fifth Edition Debra C. and Paul K.

EXERCISE 7-5 Upstream and Downstream Sale L06 Patterson Companv owns 80% of the outstanding common stock of Stevens Company. On June 30. 2010, land costing $500.000 is sold by one affiliate to the other for $800,000 Required Prepare in general jounal form the workpaper entries necessary because of the intercom- pany sale of land in the consolidated linancia statements workpaper for the year ended December 3120 assuming that: A. Patterson Company purchased the land from Stevens Company B. Stevens Company purchased the land from Patterson Company the land from Stevens Commpy