Parent Corporation purchased land from S1 Corporation for $220,000 on December 26,2008.This purchase followed a series of transactions between P-controlled subsidiaries.On February 15,2008,S3 Corporation purchased the land from a nonaffiliate for $160,000.It sold the land to S2 Company for $145,000 on October 19,2008,and S2 sold the land to S1 for $197,000 on November 27,2008.Parent has control of the following companies:
Parent reported income from its separate operations of $200,000 for 2008.

-Based on the preceding information,at what amount should the land be reported in the consolidated balance sheet as of December 31,2008?

Question

Parent Corporation purchased land from S1 Corporation for $220,000 on December 26,2008.This purchase followed a series of transactions between P-controlled subsidiaries.On February 15,2008,S3 Corporation purchased the land from a nonaffiliate for $160,000.It sold the land to S2 Company for $145,000 on October 19,2008,and S2 sold the land to S1 for $197,000 on November 27,2008.Parent has control of the following companies:
Parent reported income from its separate operations of $200,000 for 2008.
 
-Based on the preceding information,at what amount should the land be reported in the consolidated balance sheet as of December 31,2008?

Quizplus · Accepted Answer

The Answer of Parent Corporation purchased land from S1 Corporation for $220,000 on December 26,2008.This purchase followed a series of transactions between P-controlled subsidiaries.On February 15,2008,S3 Corporation purchased the land from a nonaffiliate for $160,000.It sold the land to S2 Company for $145,000 on October 19,2008,and S2 sold the land to S1 for $197,000 on November 27,2008.Parent has control of the following companies:
Parent reported income from its separate operations of $200,000 for 2008.
 
-Based on the preceding information,at what amount should the land be reported in the consolidated balance sheet as of December 31,2008?

Parent Corporation Purchased Land from S1 Corporation for $220,000 on December