REFERENCE: Ref.05_09 Stiller Company,an 80% Owned Subsidiary of Leo Company,purchased Land from Land
REFERENCE: Ref.05_09
Stiller Company,an 80% owned subsidiary of Leo Company,purchased land from Leo on March 1,2009,for $75,000.The land originally cost Leo $60,000.Stiller reported net income of $125,000 and $140,000 for 2009 and 2010,respectively.Leo uses the equity method to account for its investment.
-On a consolidation worksheet,what adjustment would be made for 2009 regarding the land transfer?
A) Debit gain for $50,000.
B) Credit gain for $50,000.
C) Debit land for $15,000.
D) Credit land for $15,000.
E) Credit gain for $15,000.
Correct Answer:
Verified
Q67: REFERENCE: Ref.05_09
Stiller Company,an 80% owned subsidiary of
Q68: REFERENCE: Ref.05_10
Stark Company,a 90% owned subsidiary of
Q69: REFERENCE: Ref.05_09
Stiller Company,an 80% owned subsidiary of
Q70: REFERENCE: Ref.05_10
Stark Company,a 90% owned subsidiary of
Q71: REFERENCE: Ref.05_09
Stiller Company,an 80% owned subsidiary of
Q73: REFERENCE: Ref.05_10
Stark Company,a 90% owned subsidiary of
Q74: REFERENCE: Ref.05_10
Stark Company,a 90% owned subsidiary of
Q75: REFERENCE: Ref.05_11
Pepe,Incorporated acquired 60% of Devin Company
Q76: REFERENCE: Ref.05_10
Stark Company,a 90% owned subsidiary of
Q77: For consolidation purposes,what net debit or credit
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents