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X b 125 of the gain on sale equipment xx c 800 of the

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Xb.12.5 % of the gain on sale.
c.80.0 % of the gain on sale.
d.100
5.Lorikeet Corporation acquired an 80% interest in Nectar Corporation on January 1,2010 at a cost equal to book value and fair value.In the same year Nectar sold landcosting $50,000 to Lorikeet for $30,000.On July 1, 2015, Lorikeet sold the land to anunrelated party for $110,000.What will be the gain reported on the consolidatedincome statement for 2015?a.b.
Xc.
d.$48,000
2
6.On January 1, 2018, P Corporation sold equipment with a 3-year remaining life and abook value of $40,000 to its 70% owned subsidiary for a price of $46,000.In theconsolidated workpapers for the year ended December 31, 2019, the eliminationentries for this transaction will include a:
7.Perry Corporation owns 100% of Silva Company’s common stock.On January 1, 2018,Perry sold equipment with a book value of $140,000 to Silva for $200,000.Silva isdepreciating the equipment over a ten-year life by the straight-line method.The netadjustments to compute 2018 and 2019 consolidated income would be an increase(decrease) of20182019Consolidated workpaper entries (2018):Xa.($54,000)$6,000Gain on Equipment60,000b.($60,000)$0Equipment60,000c.($60,000)$6,000AccumulatedDepreciation6,000d.($54,000)$0Depreciation Expense6,000Sales Price200,000Consolidated workpaper entries (2019):Book value140,000Accumulated Depreciation6,000Gain60,000Investment in S54,000Equipment60,00060,000= 6,000AccumulatedDepreciation6,00010Depreciation Expense6,000

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Term
Fall
Professor
SAVITASAHAY
Tags
Balance Sheet, Generally Accepted Accounting Principles

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