Examlex

Solved

Company a Holds 70 Percent of the Voting Shares of Company

question 32

Multiple Choice

Company A holds 70 percent of the voting shares of Company B.During 20X8,Company B sold land with a book value of $125,000 to Company A for $150,000.Company A continues to hold the land at the end of the year.The companies file separate tax returns and are subject to a 40 percent tax rate.Assume that Company A uses the fully adjusted equity method in accounting for its investment in Company B.
-Based on the information given,which eliminating entry relating to the intercorporate sale of land is to be entered in the consolidation worksheet prepared at the end of 20X8?


Definitions:

Technical Expertise

The specialized knowledge or skills in a specific field or technology, enabling individuals to perform complex tasks or solve technical problems effectively.

Special

Refers to something that is distinguished or different from the norm, often implying uniqueness or exceptional quality.

Support

The assistance or resources provided by individuals, groups, or organizations to help achieve a particular goal.

High Performance

Describes systems, organizations, or individuals that achieve superior results relative to their goals or benchmarks.

Related Questions