At the End of 2017, the Consolidation Entry to Eliminate

question 86

Multiple Choice

At the end of 2017, the consolidation entry to eliminate Cale's accrual of Kaltop's earnings would include a credit to Investment in Kaltop Co.for

• A) $124,400.
• B) $126,000.
• C) $127,000.
• D) $ 76,400.
• E) $ 0.

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Definitions:

General Ledger

A comprehensive accounting record of all transactions that have occurred in a business over a period of time.

Receiving Report

A document that records the details of goods received by a company, often used to verify deliveries and invoice payments.

Predetermined Overhead Rate

A predetermined overhead rate is an estimated rate used to assign overhead costs to products or job orders, based on a specific activity base.

Budget Data

Financial plans containing detailed projections of revenues and expenses for a future period, often used for management control and planning.