Exam 5: Consolidated Financial Statements Intra-Entity Asset Transactions

Assuming there are no excess amortizations or other intra-entity transactions, Compute the income from Devin reported on Pepe's books for 2018.

Webb Co.acquired 100% of Rand Inc.on January 5, 2018.During 2018, Webb sold goods to Rand for $2,400,000 that cost Webb $1,800,000.Rand still owned 40% of the goods at the end of the year.Cost of goods sold was $10,800,000 for Webb and $6,400,000 for Rand.What was consolidated cost of goods sold?

In the consolidation worksheet for 2018, assuming Carter uses the initial value method of accounting for its investment in Strickland, which of the following accounts would be debited to defer unrecognized intra-entity gross profit with regard to the 2017 intra-entity transfers?

Assuming there are no excess amortizations associated with the consolidation, and no other intra-entity asset transfers, compute the net income attributable to the noncontrolling interest of Gargiulo for 2019.

On November 8, 2018, Power Corp.sold land to Wood Co., its wholly owned subsidiary.The land cost $61,500 and was sold to Wood for $89,000.For consolidated financial statement reporting purposes, when must the gain on the sale of the land be recognized?

At what amount should the equipment (net of depreciation) be included in the consolidated balance sheet dated December 31, 2017?

In the consolidation worksheet for 2017, which of the following accounts would be credited to eliminate the intra-entity transfer of inventory?

Assuming there are no excess amortizations or other intra-entity transactions, compute the net income attributable to the noncontrolling interest of Devin for 2018.

Assume that Polar sold inventory to Icecap at a markup equal to 25% of cost.Intra-entity transfers were $130,000 in 2017 and $165,000 in 2018.Of this inventory, $39,000 of the 2017 transfers were retained and then sold by Icecap in 2018, while $55,000 of the 2018 transfers was held until 2019. Required: For the consolidated financial statements for 2018, determine the balances that would appear for the following accounts: (i) Cost of Goods Sold; (ii) Inventory; and (iii) Net income attributable to the noncontrolling interest.

Assuming there are no excess amortizations or other intra-entity transactions, compute income from Stark reported on Parker's books for 2018.

Assuming there are no excess amortizations or other intra-entity transactions, Compute the income from Devin reported on Pepe's books for 2017.

In the consolidation worksheet for 2017, which of the following accounts would be credited to eliminate the intra-entity transfer of inventory?

What is the gain or loss on equipment recognized by Devin on its internal accounting records for 2017?

What is an intra-entity gross profit on a transfer of inventory, and how is it treated on a consolidation worksheet?

Justings Co.owned 80% of Evana Corp.During 2018, Justings sold to Evana land with a book value of $48,000.The selling price was $70,000.For purposes of the December 31, 2018 consolidated financial statements, at what amount should the land be reported?

Included in the amounts for Pot's sales were Pot's sales of merchandise to Skillet for $140,000.There were no intra-entity transfers from Skillet to Pot.Intra-entity transfers had the same markup as sales to outsiders.Skillet still held 40% of the intra-entity gross profit remaining in ending inventory at the end of 2018.What are consolidated sales and cost of goods sold, respectively for 2018?

Tara Company owns 80 percent of the common stock of Stodd Inc.In the current year, Tara reports sales of $5,000,000 and cost of goods sold of $3,500,000.For the same period, Stodd has sales of $500,000 and cost of goods sold of $400,000.During the year, Stodd sold merchandise to Tara for $40,000 at a price based on the normal markup.At the end of the year, Tara still possesses 20 percent of this inventory.Prepare the consolidation entry to defer intra-entity gross profit.

An intra-entity transfer took place whereby the transfer price was less than the book value of a depreciable asset.Which statement is true for the year subsequent to the year of transfer?

Assuming there are no excess amortizations associated with the consolidation, and no other intra-entity asset transfers, compute the net income attributable to the noncontrolling interest of Gargiulo for 2018.

What is consolidated net income for 2018?