Question
Paste Corporation owns 70 percent of Stick Corporations voting common stock. On March 12, 20X2, Stick sold land it had purchased for $140,000 to Paste
Paste Corporation owns 70 percent of Stick Corporations voting common stock. On March 12, 20X2, Stick sold land it had purchased for $140,000 to Paste for $185,000. Paste plans to build a new warehouse on the property in 20X3. Required: a. Prepare the worksheet consolidation entries to remove the effects of the intercompany sale of land in preparing the consolidated financial statements at December 31, 20X2 and 20X3. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
a1. Prepare the entry to remove the effects of the intercompany sale of land for the consolidated financial statements at 12/31/X2.
a2. Prepare the entry to remove the effects of the intercompany sale of land for the consolidated financial statements at 12/31/X3.
b. Prepare the worksheet consolidation entries needed at December 31, 20X3 and 20X4, if Paste had initially purchased the land for $150,000 and sold it to Stick on March 12, 20X2, for $180,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
b1. Prepare the consolidation entry needed to remove the effects of the intercompany sale of land for the December 31, 20X3 consolidated financial statements.
b2. Prepare the consolidation entry needed to remove the effects of the intercompany sale of land for the December 31, 20X4 consolidated financial statements.
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