7-30 - P7-30 Intercompany Transfer of Inventory and...

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Unformatted text preview: P7-30 Intercompany Transfer of Inventory and Land1/1/0294,000 - .70 (80,000 + 20,000) = 24,00070%Bdlg & Eq20,00014,000101,400Patents10,000 52,00024,0001/1/03 24,000-3400) = 20,60012/31/02 LAST YEAR48,00032,000H --------------B ------------EIP= 16,000 During 2003:From 2002 intercompany sale:SOLD: 27,000/48,000 x 16,000 (BIP) =9,000 interco profit confirmedHart Did NOT sell: 21,000/48,000 x 16,000 = 7,000 interco profit still in inventory90,00060,000H --------------B ------------EIP= 30,000 x 24/90 = 8,000 15,00030,000------- H ------------B EIP= 15,000 x 7600/30,000 = 3,800Land x2H BCost22,000SP37,000Gain15,000 7-30 continuedEquity method entries:Investment in S17,500 Income from S17,500Net income (25,000 x 70%)Cash10,500 Investment in S10,500Dividends (15,000 x 70%)Income from S3,400 Investment in S3,400Differentiala.Eliminating entries:E(1)...
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This note was uploaded on 04/18/2008 for the course ACCT cost taught by Professor Staff during the Spring '08 term at Oklahoma State.

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7-30 - P7-30 Intercompany Transfer of Inventory and...

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