Questions 7 and 8 please!

7. Parent sold land to its subsidiary for a gain in 2008. The subsidiary sold the land extermally for a gain in 2011. Which of the following statements is true? A. A gain will be reported in the consolidated income statement in 2008. B. A gain will be reported in the consolidated income statement in 2011. C. No gain will be reported in the 2011 consolidated income statement D. Only the parent company will report a gain in 2011 E. The subsidiary will report a gain in 2008. An intra-entity sale took place whereby the transfer price exceeded the book value of a depreciable asset. Which statement is true for the year following the sale? 8. A. A worksheet entry is made with a debit to gain for a downstream transfer. B. A worksheet entry is made with a debit to gain for an upstream transfer. C. A worksheet entry is made with a debit to investment in subsidiary for a downstream transfer when the parent uses the equity method. D. A worksheet entry is made with a debit to retained earnings for a downstream transfer, regardless of the method used account for the investment. E. No worksheet entry is necessary. 9. Which of the following statements is true concerning an intra-entity transfer of a depreciable asset? A. Non-controlling interest in subsidiary's net income is never affected by a gain on the transfer B. Non-controlling interest in subsidiary's net income is always affected by a gain on the transfer. C. Non-controlling interest in subsidiary's net income is affected by a downstream gain only D Non-controlling interest in subsidiary's net income is affected only when the transfer is E. Non-controlling interest in subsidiary's net income is increased by an upstream gain in the year of upstream. transfer 10, On January 1, 2010, Smeder Company, an 80% owned subsidiary of Collins, Inc., transferred equipment with a 10-year life (six of which remain with no salvage value) to Collins in exchange for $84,000 cash. At the date of transfer, Smeder's records carried the equipment at a cost of $120,000 less accumulated depreciation of $48,000. Straight-line depreciation is used. Smeder reported net income of $28,000 and $32,000 for 2010 and 2011, respectively. Compute Collins' share of Smeder's net income for 2011. NI 32OOO , A. $27,600. B. $23,600