Exam 4: Intercompany Transactions: Merchandise, Plant Assets, and Notes

During 2018, a parent company billed its 100%-owned subsidiary for computer services at the rate of $1,000 per month.At year end, one month's bill remained unpaid.As a part of the consolidation process, net income

On January 1, 2016 Bullock, Inc.sells land to its 80%-owned subsidiary, Humphrey Corporation, at a $20,000 gain.The land is sold by Humphrey to an outside party in 2018.What is the effect of the intercompany sale of land on 2018 consolidated net income?​

Emron Company owns a 100% interest in the common stock of the Dietz Company.On January 1, 2017, Emron sold Dietz a fixed asset that Dietz will use over a 5-year period.The asset was sold at a $5,000 profit.In the consolidated statements, this profit will