Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On the equity method we... Update the value of the investment corresponding to any associated companies Adjust the value of the aggregated investment item formed
On the equity method we... Update the value of the investment corresponding to any associated companies Adjust the value of the aggregated investment item formed by any associated and full consolidated companies Recognize always the non-controlling interest as a liability in the consolidated balance sheet None of the other answers are correct Company A has internally developed a software incurring only in personnel expenses. This software was sold to Company B amounting to 50,000 . The personnel cost involved amounting to 24,000 . The software was sold as at 30 June 2014 and started operations as at 1 July 2014. The software is being depreciated in 4 years. We should adjust in full consolidation: Debit 26,000 Operating revenues, Credit 26,000 Software, Debit 3,250 Accumulated depreciation, Credit 3,250 Operating expenses Debit 50,000 Operating revenues, Credit 50,000 Software, Debit 3,250 Accumulated depreciation, Credit 3,250 Operating expenses Debit 50,000 Operating revenues, Credit 50,000 Software, Debit 6,500 Accumulated depreciation, Credit 6,500 Operating expenses None of the other answers are correct
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started