Questions from Financial Accounting

Q: How do unrealized intercompany inventory profits from a prior period affect the

How do unrealized intercompany inventory profits from a prior period affect the computation of consolidated net income when the inventory is resold in the current period? Is it important to know wheth...

Q: How will the elimination of unrealized intercompany inventory profits recorded on the

How will the elimination of unrealized intercompany inventory profits recorded on the parent’s books affect consolidated retained earnings?

Q: How will the elimination of unrealized intercompany inventory profits recorded on the

How will the elimination of unrealized intercompany inventory profits recorded on the subsidiary’s books affect consolidated retained earnings?

Q: What type of adjustment must be made in the consolidation worksheet if

What type of adjustment must be made in the consolidation worksheet if a differential is assigned to land and the subsidiary disposes of the land in the current period?

Q: Is an inventory sale from one subsidiary to another treated in the

Is an inventory sale from one subsidiary to another treated in the same manner as an upstream sale or a downstream sale? Why?

Q: What consolidation entry is needed when inventory is sold to an affiliate

What consolidation entry is needed when inventory is sold to an affiliate at a profit and is resold to an unaffiliated party before the end of the reporting period? (Assume both affiliates use perpetu...

Q: A subsidiary sold a depreciable asset to the parent company at a

A subsidiary sold a depreciable asset to the parent company at a gain in the current period. Will the income assigned to the noncontrolling interest in the consolidated income statement for the curren...

Q: A subsidiary sold a depreciable asset to the parent company at a

A subsidiary sold a depreciable asset to the parent company at a profit of $1,000 in the current period. Will the income assigned to the noncontrolling interest in the consolidated income statement fo...

Q: If a company sells a depreciable asset to its subsidiary at a

If a company sells a depreciable asset to its subsidiary at a profit on December 31, 20X3, what account balances must be eliminated or adjusted in preparing the consolidated income statement for 20X3?...

Q: If the sale in the preceding question occurs on January 1,

If the sale in the preceding question occurs on January 1, 20X3, what additional account will require adjustment in preparing the consolidated income statement?