King Corp Owns 85% of James Co

question 51

Essay

King Corp. owns 85% of James Co. King uses the equity method to account for this investment. During 2011, King sells inventory to James for $500,000. The inventory originally cost King $420,000. At 12/31/11, 25% of the goods were still in James' inventory.
Required:
Prepare the Consolidation Entry TI and Consolidation Entry G for the consolidation worksheet.

---

Definitions:

Recognized

Acknowledged or known from one’s achievements, status, or attributes by others.

Federal Unemployment Tax

A tax imposed on employers to fund state workforce agencies. Employers pay this tax to finance unemployment compensation benefits for workers who have lost their jobs.

Form 940

A tax form filed by employers to report their annual Federal Unemployment Tax Act (FUTA) tax.

Failure to Assign Ownership

A situation where responsibilities or tasks are not clearly assigned to specific individuals or teams, often leading to confusion and lack of accountability.