Ted Was Shopping for a New Automobile

question 26

Essay

Ted was shopping for a new automobile. He found one that met his needs and agreed to purchase it for $23,000. He had shopped around and concluded that he could not get a better price from another dealer. After he had paid for the automobile, the dealer called to notify Ted that he was entitled to a manufacturer's rebate of $1,500. The next week he received a $1,500 check from the manufacturer. How much should Ted include in gross income?

Comprehend the consolidation adjustments required for intercompany bond transactions and their impacts on financial statements.

Calculate consolidated basic and diluted earnings per share.

Analyze the effects of stock transactions and noncontrolling interests on the investment accounts and equity sections of the parent company.

Understand the treatment and presentation of dividends and intra-entity transfers in consolidated financial statements.