Farm Owns 70% of the Common Shares of XL and Accounts

question 25

Essay

Farm owns 70% of the common shares of XL and accounts for its investment using the cost method. In 20X6, Farm purchased equipment from XL for $300,000. The equipment had been purchased by XL for $420,000 in 20X2, had accumulated depreciation of $168,000 and a six-year remaining life at December 31, 20X5. Both companies record a full year of depreciation expense in the year of the purchase and no depreciation in the year of a sale.
Required:
Indicate the consolidation adjustments to the following accounts for the years ended 20X6, 20X8, and 20X11:
• Depreciation expense
• Net book value of equipment
• Non-controlling interest on statement of comprehensive income
• Non-controlling interest on statement of financial position
• Retained earnings, end of year

Recognize the influence of genetic factors on behavior and personality traits.

Identify the effects of environmental factors on behavior and personality development.

Distinguish between genetic and environmental influences on health and disease susceptibility.

Describe the mechanisms by which psychoactive drugs affect the brain and behavior.

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Definitions:

Indirect Cost

Costs not directly traceable to a product, department, or project, such as administration, rent, and utilities.

Manufacturing

The process of converting raw materials, components, or parts into finished goods that meet a customer's expectations or specifications.

Factory Rent

Expenses incurred for leasing a premises to use as a manufacturing or production facility.

Prime Costs

The combined direct costs of raw materials and labor that are directly attributable to the production of a product.