Patti Corp. has several subsidiaries (Aeta, Beta, and Gaeta) that are included in its consolidated financial statements. In its 12/31/X1 separate balance sheet, Patti had the following intercompany balances before eliminations: In its 12/31/X1 consolidated balance sheet, what amount should Patti report as intercompany receivables?

Question

Patti Corp. has several subsidiaries (Aeta, Beta, and Gaeta) that are included in its consolidated financial statements. In its 12/31/X1 separate balance sheet, Patti had the following intercompany balances before eliminations:  In its 12/31/X1 consolidated balance sheet, what amount should Patti report as intercompany receivables?

Quizplus · Accepted Answer

All intercompany debt and receivable balances are eliminated.