Flintstone Inc

question 111

Essay

Flintstone Inc. acquired all of Rubble Co. on January 1, 2013. Flintstone decided to use the initial value method to account for this investment. During 2013, Flintstone sold to Rubble for $600,000 inventory with a cost of $500,000. At the end of the year 30% of the goods were still in Rubble's inventory.
Required:
Prepare Consolidation Entry TI for the intra-entity transfer and Consolidation Entry G for the ending inventory adjustment necessary for the consolidation worksheet at 12/31/15.

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Definitions:

Evolutionary Theory

A scientific explanation for the diversity of life, proposing that species change over time through natural selection and genetic variation.

Associative Learning

A learning process by which a connection or association is made between two stimuli or between a behavior and a stimulus.

Psychologist

A professional specializing in the study of the mind and behavior, often providing therapy and counseling services.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired: a response which is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.