Questions from Advanced Accounting

Q: When are unrealized gains and losses from intercompany sales of land realized

When are unrealized gains and losses from intercompany sales of land realized from the viewpoint of the selling affiliate?

Q: How is the computation of noncontrolling interest share affected by downstream sales

How is the computation of noncontrolling interest share affected by downstream sales of land? By upstream sales of land?

Q: Pop Company paid $198,000 for a 90 percent interest

Pop Company paid $198,000 for a 90 percent interest in Son on January 5, 2016, when Son’s capital stock was $120,000 and its retained earnings $40,000. Trial balances for the compani...

Q: Consolidation workpaper entries are made to eliminate 100 percent of the unrealized

Consolidation workpaper entries are made to eliminate 100 percent of the unrealized profit from the land account in downstream sales of land. Is 100 percent also eliminated for upstream sales of land?...

Q: How are unrealized gains and losses from intercompany transactions involving depreciable assets

How are unrealized gains and losses from intercompany transactions involving depreciable assets eventually realized?

Q: Describe the computation of noncontrolling interest share in the year of an

Describe the computation of noncontrolling interest share in the year of an upstream sale of depreciable plant assets.

Q: How does a parent eliminate the effects of unrealized gains on intercompany

How does a parent eliminate the effects of unrealized gains on intercompany sales of plant assets under the equity method?

Q: What is the effect of intercompany sales of plant assets on the

What is the effect of intercompany sales of plant assets on the parent and consolidated net income in years subsequent to the year of sale?

Q: 1. Which of the following is not a characteristic of a

1. Which of the following is not a characteristic of a constructive retirement of bonds from an intercompany bond transaction? a Bonds are retired for consolidated statement purposes only. b The recip...

Q: Son Corporation is a 70 percent–owned subsidiary of Pop Corporation

Son Corporation is a 70 percent–owned subsidiary of Pop Corporation. On January 2, 2016, Son purchased $600,000 par of Pop’s $900,000 outstanding bonds for $602,000 in the bond market. Pop’s bonds hav...