review for test 4 - An intra-entity sale took place whereby...

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An intra-entity sale took place whereby the book value exceeded the transfer price of a depreciable asset. Which statement is true for the year following the sale? A worksheet entry is made with a debit to retained earnings for an upstream transfer. A worksheet entry is made with a credit to retained earnings for an upstream transfer. A worksheet entry is made with a debit to retained earnings for a downstream transfer. A worksheet entry is made with a debit to investment in subsidiary for a downstream transfer. No worksheet entry is necessary. An intra-entity sale took place whereby the transfer price was less than the book value of a depreciable asset. Which statement is true for the year following the sale? A worksheet entry is made with a debit to investment in subsidiary for an upstream transfer. A worksheet entry is made with a debit to investment in subsidiary for a downstream transfer. A worksheet entry is made with a credit to investment in subsidiary for a downstream transfer when the parent uses the equity method. A worksheet entry is made with a debit to retained earnings for an upstream transfer, regardless of the method used to account for the investment. No worksheet entry is necessary. Which of the following statements is true concerning an intra-entity transfer of a depreciable asset? Noncontrolling interest in subsidiary's net income is never affected by a gain on the transfer. Noncontrolling interest in subsidiary's net income is always affected by a gain on the transfer. Noncontrolling interest in subsidiary's net income is affected by a downstream gain only. Noncontrolling interest in subsidiary's net income is affected only when the transfer is upstream. Noncontrolling interest in subsidiary's net income is increased by an upstream gain in the year of transfe Gargiulo Company, a 90% owned subsidiary of Posito Corporation, sells inventory to Posito at a 25% profit on selling price. The following data are available pertaining to intra-entity purchases. Gargiulo was acquired on January 1, 2010. Assume the equity method is used. The following data are available pertaining to Gargiulo's income and dividends. 230. award: 0 out of 0 points Compute the equity in earnings of Gargiulo reported on Posito's books for 2010. $63,000.
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$62,730. $63,270. $70,000. $62,700. references 231. award: 0 out of 0 points Compute the equity in earnings of Gargiulo reported on Posito's books for 2011. $76,500. $77,130. $75,870. $75,600. $75,800. references 232. award: 0 out of 0 points Compute the equity in earnings of Gargiulo reported on Posito's books for 2012. $84,600. $84,375. $83,925. $84,825. $84,850. references 233. award: 0 out of 0 points
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Compute the noncontrolling interest in Gargiulo's net income for 2010. $6,970.
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review for test 4 - An intra-entity sale took place whereby...

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