Question
Which statement is false regarding intercompany sales of property between a parent and a subsidiary? A. If land is sold by a subsidiary to its
Which statement is false regarding intercompany sales of property between a parent and a subsidiary?
A. If land is sold by a subsidiary to its parent during 2015 at a gain, and then the parent sells the land to an outside party during 2016, no eliminating entries are required for the land in 2017.
B. If land is sold by the subsidiary to the parent during 2016 at a gain, there is no need to adjust the noncontrolling interest in the subsidiary's income for 2017.
C. If depreciable property is sold by a 70%-owned subsidiary to its parent during 2016 at a gain, there is no need to adjust the noncontrolling interest in the subsidiary's income for 2017.
D. If depreciable property with a 5-year life is sold by a parent to its 70%-owned subsidiary during 2016 at a gain, and the subsidiary still holds the property, there is no need to adjust the noncontrolling interest in the subsidiary's income for 2017.
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The Power Of Accounting What The Numbers Mean And How To Use Them
Authors: Lawrence Lewis
1st Edition
0415884306, 978-0415884303
