Pina Corp.owns 60% of Simon Corp.'s outstanding common stock.On May 1, 2013, Pina advanced Simon $90,000 in cash, which was still outstanding at December 31, 2013.What portion of this advance should be eliminated in the preparation of the December 31, 2013 consolidated balance sheet?

Question

Quizplus · Accepted Answer

In a consolidated balance sheet, intercompany transactions such as advances between parent and subsidiary are eliminated in full. Therefore, the entire $90,000 should be eliminated.

Pina CorpOwns 60% of Simon Corp