Patch Corporation purchased land from Sub1 Corporation for $350,000 on December 3,20X5.This purchase followed a series of transactions between Patch-controlled subsidiaries.On January 23,20X5,Sub3 Corporation purchased the land from a nonaffiliate for $240,000.It sold the land to Sub2 Company for $220,000 on July 15,20X5,and Sub2 sold the land to Sub1 for $305,000 on September 5,20X5.Patch has control of the following companies:
Patch reported income from its separate operations of $345,000 for 20X5.
-Based on the preceding information,at what amount should the land be reported in the consolidated balance sheet as of December 31,20X5?

Question

Patch Corporation purchased land from Sub1 Corporation for $350,000 on December 3,20X5.This purchase followed a series of transactions between Patch-controlled subsidiaries.On January 23,20X5,Sub3 Corporation purchased the land from a nonaffiliate for $240,000.It sold the land to Sub2 Company for $220,000 on July 15,20X5,and Sub2 sold the land to Sub1 for $305,000 on September 5,20X5.Patch has control of the following companies:
  Patch reported income from its separate operations of $345,000 for 20X5.
-Based on the preceding information,at what amount should the land be reported in the consolidated balance sheet as of December 31,20X5?

Quizplus · Accepted Answer

The Answer of Patch Corporation purchased land from Sub1 Corporation for $350,000 on December 3,20X5.This purchase followed a series of transactions between Patch-controlled subsidiaries.On January 23,20X5,Sub3 Corporation purchased the land from a nonaffiliate for $240,000.It sold the land to Sub2 Company for $220,000 on July 15,20X5,and Sub2 sold the land to Sub1 for $305,000 on September 5,20X5.Patch has control of the following companies:
  Patch reported income from its separate operations of $345,000 for 20X5.
-Based on the preceding information,at what amount should the land be reported in the consolidated balance sheet as of December 31,20X5?

Patch Corporation Purchased Land from Sub1 Corporation for $350,000 on December