0% of Sanderson Company\'s outstanding voting stock land on January 1,2016, for
ID: 2518418 • Letter: 0
Question
0% of Sanderson Company's outstanding voting stock land on January 1,2016, for $60,000. On June 10, 2017, Carrey sold the land to Sanderson for $80,000. Carrey Instructions: Give the worksheet consolidation entries needed to remove the effects of the intercompany a. sale of land in preparing the consolidated financial statements for 2017 b and 2018so Give the worksheet consolidation entries needed on December Sanderson had initially purchased the land for June 10, 2017, for $80,000. 31,2017 and 2018, ir $60,000 and then sold it to Carrey orn Use the paper provided for your answer You must show your calculations to receive credit. Perkins Corporation owns 80% of the outstanding voting stock of Scott Company. During 2017, Scott reported net income of $600,000. Scott declared and paid dividends of $120,000. During 2017, Perkins sold equipment with a cost of $340,000 to Scott Company. The expected usefiul life of the equipment is 10 years. Perkins had used 4. for 6 years. Perki ns recorded a gain on the sale of $30,000. equipment Instructions: a. Prepare the journal entry/entries made by Perkins during 2017. b. Prepare the journal entrylentries made by Scott during 2017 c. Prepare pany sale of equipment needed at December 31,2017, to prepare a full set pf consolidated financial statements. the consolidation entry/entries related to the intercom Use the paper provided for your answer You must show your calculations to receive credit.Explanation / Answer
Requirement A
In the books of perkins
Requirement B
In the books of scott
Requirement C
general journal Debit credit Cash $96,000 investment in scott company $3,84,000 To income from subsidiary $4,80,000 (being share of income and dividend recorded from subsidiary) Cash $1,66,000 Accumulated Depreciation $2,04,000 To profit on sale of asset $30,000 To cost of equipment $3,40,000 (Being equipment sold to scott at $ 166,000)Related Questions
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