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Unformatted text preview: P6-35 Consolidation Workpaper in Year of Intercompany Transfer1/1/x2 160,000 - .80 (100,000+50,000) = 40,000Goodwill 40,000Impairment loss (20x6) 25,000Land Sale1/11/05 P <- LCost8,000Sale price18,000Gain10,000Equipment sale P -> L1/1/06Life1/1/01Cost75,000A/D25,000Book Val50,000105,000Sale price70,000107,000Gain20,0002,000Equity method entries:Investment in S32,000Income from S32,000Net income (40,000 x 80%)Cash4,000Investment in S4,000Dividends (5,000 x 80%)P6-35 continueda.Eliminating entries, December 31, 20X6:E(1)Income from Subsidiary32,000 Dividends Declared4,000Investment in Lane Company Stock28,000Eliminate income from subsidiary.E(2)Income to Noncontrolling Interest8,000 Dividends Declared1,000Noncontrolling Interest7,000Assign income to noncontrolling interest:$8,000 = $40,000 x .20E(3)Common Stock Lane Company100,000 Retained Earnings, January 1105,000 Differential40,000 Investment in Lane Company Stock204,000Noncontrolling Interest41,000Eliminate beginning investment balance....
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- Spring '08