Essay
(Module 1) Pazda sold inventory costing $40,000 to its 100%-owned subsidiary, Sazda, for $100,000 in 2006. Sazda resold $70,000 of this inventory for $130,000 in 2006. Sazda reported $300,000 of net income for 2006.
Required:
a. Prepare the general ledger entry required at the end of 2006 under the complete equity method.
b. Prepare the consolidation entry or entries required at 12/31/06.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: Equity Method Consolidation Worksheet (MODULE 1)<br>Complete the
Q2: For the year ended 12/31/06, selected line
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