On a Consolidation Worksheet, Having Used the Equity Method, What

question 108

Multiple Choice

On a consolidation worksheet, having used the equity method, what adjustment would be made for 2018 regarding the land transfer?

• A) Debit retained earnings for $15,000.
• B) Credit retained earnings for $15,000.
• C) Debit retained earnings for $50,000.
• D) Credit retained earnings for $50,000.
• E) Debit investment in Stiller for $15,000.

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Definitions:

Expression

A combination of numbers, variables, and mathematical operations that represents a particular value.

X

Often used in mathematics as a variable or unknown value in equations and algebraic expressions.

Simplify

The process of altering an expression to make it easier to understand or work with, often by combining like terms or eliminating complex fractions.

Expression

An expression in mathematics is a combination of symbols, numbers, and/or variables that represents a quantity or a relationship but does not include an equality or inequality symbol.