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Unformatted text preview: P6-36 Intercorporate Sales in Prior Years1/1/05180,000 - .80 (30,000+20,000+100,000) = 60,000Diff80%LifePatent50,00040,000202,000B&E20,000201,00060,0003,0001/1/8 balance = 60,000 (3 x 3,000) = 51,000Building sale P -> S12/31/07LifeCost125,00025A/D75,000Book Val50,000105,000Sale price65,000106,500Gain15,0001,500Land Sale7/1/06 P <- SCost22,000Sales Price35,000Gain13,000Equity method entries:Investment in S24,000Income from S24,000Net income (30,000 x 80%)Cash8,000Investment in S8,000Dividends (10,000 x 80%)Income from S3,000Investment in S3,000Amortize differentiala.Eliminating entries, December 31, 20X8:E(1)Income from Subsidiary21,000Dividends Declared8,000Investment in Skate Company Stock13,000Eliminate income from subsidiary.E(2)Income to Noncontrolling Interest6,000Dividends Declared2,000Noncontrolling Interest4,000Assign income to noncontrolling interest.E(3)Common Stock Skate Company30,000Additional Paid-In Capital Skate Company20,000Retained Earnings, January 1150,000...
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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.
- Spring '08