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King CorpOwns 85% of James Co

question 40

Essay

King Corp.owns 85% of James Co.King uses the equity method to account for this investment.During 2009,King sells inventory to James for $500,000.The inventory originally cost King $420,000.At 12/31/09,25% of the goods were still in James' inventory.
Required:
Prepare the Consolidation Entry TI and Consolidation Entry G for the consolidation worksheet.


Definitions:

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The financial gain that results when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

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A comprehensive document or blueprint outlining a business's advertising and marketing efforts for the coming period.

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