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King Corp Owns 85% of James Co

question 35

Essay

King Corp. owns 85% of James Co. King uses the equity method to account for its investments. During 2021, King sells inventory to James for $500,000. The inventory originally cost King $420,000. At December 31, 2021, 25% of the goods were still in James' inventory.Required:Prepare the Consolidation Entry TI and Consolidation Entry G for the consolidation worksheet.


Definitions:

Simplify

The process of reducing an expression to its most basic form by performing calculations and combining like terms.

Expression

A combination of symbols and numbers that, together, represent a value or concept.

Simplify

Simplifying in mathematics involves altering an expression or equation to make it easier to work with, often by combining like terms and reducing expressions to their simplest form.

Expression

A combination of symbols that represent a quantity or relationship but do not resolve to a single numerical value.

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