Question
Required information Stark Company, a 90% owned subsidiary of Parker, Inc., sold land to Parker on May 1, 2017, for $80,000. The land originally cost
Required information
Stark Company, a 90% owned subsidiary of Parker, Inc., sold land to Parker on May 1, 2017, for $80,000. The land originally cost Stark $85,000. Stark reported net income of $200,000, $180,000, and $220,000 for 2017, 2018, and 2019, respectively. Parker sold the land purchased from Stark in 2017 for $92,000 in 2019. Both companies use the equity method of accounting.
Assuming there are no excess amortizations or other intra-entity transactions, compute income from Stark reported on Parker's books for 2019.
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Uniform Administrative Requirements Cost Principles And Audit Requirements For Federal Awards A Handbook For Institutions Of Higher Education And State And Local Governments
Authors: Andrew Shepard-Smith
1st Edition
1505298482, 978-1505298482
