Intercompany transfers: When intercompany transfer of asset occur, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by acquiring company, when the asset is transferred at book value no special adjustments are needed. But when the asset is transferred at more or less than the book value, the unrealized gain or loss is deferred until the asset is sold to unrelated party. Moreover in the consolidation the gain or loss will be eliminated. At what amount should the land be reported in consolidated balance sheet on December 31 20X3.

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Answer 1

Question

Chapter 7, Problem 7.18E

To determine

Intercompany transfers:When intercompany transfer of asset occur, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by acquiring company, when the asset is transferred at book value no special adjustments are needed. But when the asset is transferred at more or less than the book value, the unrealized gain or loss is deferred until the asset is sold to unrelated party. Moreover in the consolidation the gain or loss will be eliminated.

At what amount should the land be reported in consolidated balance sheet on December 31 20X3.

To determine

Intercompany transfers:When intercompany transfer of asset occur, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by acquiring company, when the asset is transferred at book value no special adjustments are needed. But when the asset is transferred at more or less than the book value, the unrealized gain or loss is deferred until the asset is sold to unrelated party. Moreover in the consolidation the gain or loss will be eliminated.

The amount of gain or loss on sale of land reported in consolidated income statement for 20X3.

To determine

Intercompany transfers:When intercompany transfer of asset occur, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by acquiring company, when the asset is transferred at book value no special adjustments are needed. But when the asset is transferred at more or less than the book value, the unrealized gain or loss is deferred until the asset is sold to unrelated party. Moreover in the consolidation, the gain or loss will be eliminated.

The amount of income should be assigned to the controlling shareholders in consolidated income statement for 20X3.

To determine

Intercompany transfers:When intercompany transfer of asset occur, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by acquiring company, when the asset is transferred at book value no special adjustments are needed. But when the asset is transferred at more or less than the book value, the unrealized gain or loss is deferred until the asset is sold to unrelated party. Moreover in the consolidation the gain or loss will be eliminated.

Requirement 4

The consolidation entry related to land that appear in consolidation worksheet for 20X3.

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Prater Incorporated enters into an exchange in which it gives up its warehouse on 10 acres of land and receives a tract of land. A summary of the exchange is as follows: Transferred FMV Original Basis Accumulated Depreciation Warehouse $ 452,500 $ 245,000 $ 45,500 Land 99,000 99,000 Mortgage on warehouse 48,750 Cash 20,500 20,500 Assets Received FMV Land $ 523,250 What are Prater's realized and recognized gain on the exchange and its basis in the assets it received in the exchange?

homework i Carver Incorporated purchased a building and the land on which the building is situated for a total cost of $846,300 cash. The land was appraised at $194,649 and the building at $778,596. Required: a. What is the accounting term for this type of acquisition? b. Determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building. c. Would the company recognize a gain on the purchase? d. Record the purchase in a horizontal statements model. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Check my work Record the purchase in a horizontal statements model. Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar. In the Statement of Cash Flows column, use the initials OA to designate operating IA for investing activity, FA for financing activity, NC for net change in cash and NA for not affected. Enter any decreases to account balances and…

Identifiable Intangibles and Goodwill Prince Corporation acquires Squire Service Corporation for one million shares of Prince stock, valued at $35 per share. Squire is merged into Prince, although it continues to do business under the Squire Service name. Professional fees connected with the acquisition are $1,200,000 and costs of registering and issuing the new shares are $600,000, both paid in cash. Squire performs vehicle maintenance services for owners of auto, truck and bus fleets. Squire's balance sheet at acquisition is as follows: Cash Accounts receivable Parts inventory Equipment Total assets $300,000 Current liabilities 2,700,000 Long-term liabilities 5,200,000 Shareholders' equity 17,600,000 $25,800,000 Total liabilities and equity $25,800,000 In reviewing Squire's assets and liabilities, you determine the following. 1. On a discounted present value basis, the accounts receivable have a fair value of $2,600,000, and the long-term liabilities have a fair value of $8,000,000.…

Answer 2

Question

Chapter 7, Problem 7.18E

To determine

Intercompany transfers:When intercompany transfer of asset occur, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by acquiring company, when the asset is transferred at book value no special adjustments are needed. But when the asset is transferred at more or less than the book value, the unrealized gain or loss is deferred until the asset is sold to unrelated party. Moreover in the consolidation the gain or loss will be eliminated.

At what amount should the land be reported in consolidated balance sheet on December 31 20X3.

To determine

Intercompany transfers:When intercompany transfer of asset occur, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by acquiring company, when the asset is transferred at book value no special adjustments are needed. But when the asset is transferred at more or less than the book value, the unrealized gain or loss is deferred until the asset is sold to unrelated party. Moreover in the consolidation the gain or loss will be eliminated.

The amount of gain or loss on sale of land reported in consolidated income statement for 20X3.

To determine

Intercompany transfers:When intercompany transfer of asset occur, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by acquiring company, when the asset is transferred at book value no special adjustments are needed. But when the asset is transferred at more or less than the book value, the unrealized gain or loss is deferred until the asset is sold to unrelated party. Moreover in the consolidation, the gain or loss will be eliminated.

The amount of income should be assigned to the controlling shareholders in consolidated income statement for 20X3.

To determine

Intercompany transfers:When intercompany transfer of asset occur, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by acquiring company, when the asset is transferred at book value no special adjustments are needed. But when the asset is transferred at more or less than the book value, the unrealized gain or loss is deferred until the asset is sold to unrelated party. Moreover in the consolidation the gain or loss will be eliminated.

Requirement 4

The consolidation entry related to land that appear in consolidation worksheet for 20X3.

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Answer 3

Question

Chapter 7, Problem 7.18E

To determine

Intercompany transfers:When intercompany transfer of asset occur, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by acquiring company, when the asset is transferred at book value no special adjustments are needed. But when the asset is transferred at more or less than the book value, the unrealized gain or loss is deferred until the asset is sold to unrelated party. Moreover in the consolidation the gain or loss will be eliminated.

At what amount should the land be reported in consolidated balance sheet on December 31 20X3.

To determine

Intercompany transfers:When intercompany transfer of asset occur, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by acquiring company, when the asset is transferred at book value no special adjustments are needed. But when the asset is transferred at more or less than the book value, the unrealized gain or loss is deferred until the asset is sold to unrelated party. Moreover in the consolidation the gain or loss will be eliminated.

The amount of gain or loss on sale of land reported in consolidated income statement for 20X3.

To determine

Intercompany transfers:When intercompany transfer of asset occur, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by acquiring company, when the asset is transferred at book value no special adjustments are needed. But when the asset is transferred at more or less than the book value, the unrealized gain or loss is deferred until the asset is sold to unrelated party. Moreover in the consolidation, the gain or loss will be eliminated.

The amount of income should be assigned to the controlling shareholders in consolidated income statement for 20X3.

To determine

Intercompany transfers:When intercompany transfer of asset occur, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by acquiring company, when the asset is transferred at book value no special adjustments are needed. But when the asset is transferred at more or less than the book value, the unrealized gain or loss is deferred until the asset is sold to unrelated party. Moreover in the consolidation the gain or loss will be eliminated.

Requirement 4

The consolidation entry related to land that appear in consolidation worksheet for 20X3.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

Question

Chapter 7, Problem 7.18E

To determine

Intercompany transfers:When intercompany transfer of asset occur, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by acquiring company, when the asset is transferred at book value no special adjustments are needed. But when the asset is transferred at more or less than the book value, the unrealized gain or loss is deferred until the asset is sold to unrelated party. Moreover in the consolidation the gain or loss will be eliminated.

At what amount should the land be reported in consolidated balance sheet on December 31 20X3.

To determine

Intercompany transfers:When intercompany transfer of asset occur, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by acquiring company, when the asset is transferred at book value no special adjustments are needed. But when the asset is transferred at more or less than the book value, the unrealized gain or loss is deferred until the asset is sold to unrelated party. Moreover in the consolidation the gain or loss will be eliminated.

The amount of gain or loss on sale of land reported in consolidated income statement for 20X3.

To determine

Intercompany transfers:When intercompany transfer of asset occur, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by acquiring company, when the asset is transferred at book value no special adjustments are needed. But when the asset is transferred at more or less than the book value, the unrealized gain or loss is deferred until the asset is sold to unrelated party. Moreover in the consolidation, the gain or loss will be eliminated.

The amount of income should be assigned to the controlling shareholders in consolidated income statement for 20X3.

To determine

Intercompany transfers:When intercompany transfer of asset occur, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by acquiring company, when the asset is transferred at book value no special adjustments are needed. But when the asset is transferred at more or less than the book value, the unrealized gain or loss is deferred until the asset is sold to unrelated party. Moreover in the consolidation the gain or loss will be eliminated.

Requirement 4

The consolidation entry related to land that appear in consolidation worksheet for 20X3.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 7, Problem 7.18E

To determine

Intercompany transfers:When intercompany transfer of asset occur, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by acquiring company, when the asset is transferred at book value no special adjustments are needed. But when the asset is transferred at more or less than the book value, the unrealized gain or loss is deferred until the asset is sold to unrelated party. Moreover in the consolidation the gain or loss will be eliminated.

At what amount should the land be reported in consolidated balance sheet on December 31 20X3.

To determine

Intercompany transfers:When intercompany transfer of asset occur, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by acquiring company, when the asset is transferred at book value no special adjustments are needed. But when the asset is transferred at more or less than the book value, the unrealized gain or loss is deferred until the asset is sold to unrelated party. Moreover in the consolidation the gain or loss will be eliminated.

The amount of gain or loss on sale of land reported in consolidated income statement for 20X3.

To determine

Intercompany transfers:When intercompany transfer of asset occur, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by acquiring company, when the asset is transferred at book value no special adjustments are needed. But when the asset is transferred at more or less than the book value, the unrealized gain or loss is deferred until the asset is sold to unrelated party. Moreover in the consolidation, the gain or loss will be eliminated.

The amount of income should be assigned to the controlling shareholders in consolidated income statement for 20X3.

To determine

Intercompany transfers:When intercompany transfer of asset occur, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by acquiring company, when the asset is transferred at book value no special adjustments are needed. But when the asset is transferred at more or less than the book value, the unrealized gain or loss is deferred until the asset is sold to unrelated party. Moreover in the consolidation the gain or loss will be eliminated.

Requirement 4

The consolidation entry related to land that appear in consolidation worksheet for 20X3.

Answer 6

Chapter 7, Problem 7.18E

To determine

Intercompany transfers:When intercompany transfer of asset occur, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by acquiring company, when the asset is transferred at book value no special adjustments are needed. But when the asset is transferred at more or less than the book value, the unrealized gain or loss is deferred until the asset is sold to unrelated party. Moreover in the consolidation the gain or loss will be eliminated.

At what amount should the land be reported in consolidated balance sheet on December 31 20X3.

Answer 7

Chapter 7, Problem 7.18E

To determine

Intercompany transfers:When intercompany transfer of asset occur, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by acquiring company, when the asset is transferred at book value no special adjustments are needed. But when the asset is transferred at more or less than the book value, the unrealized gain or loss is deferred until the asset is sold to unrelated party. Moreover in the consolidation the gain or loss will be eliminated.

At what amount should the land be reported in consolidated balance sheet on December 31 20X3.

Answer 8

To determine

Intercompany transfers:When intercompany transfer of asset occur, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by acquiring company, when the asset is transferred at book value no special adjustments are needed. But when the asset is transferred at more or less than the book value, the unrealized gain or loss is deferred until the asset is sold to unrelated party. Moreover in the consolidation the gain or loss will be eliminated.

The amount of gain or loss on sale of land reported in consolidated income statement for 20X3.

Answer 9

To determine

Intercompany transfers:When intercompany transfer of asset occur, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by acquiring company, when the asset is transferred at book value no special adjustments are needed. But when the asset is transferred at more or less than the book value, the unrealized gain or loss is deferred until the asset is sold to unrelated party. Moreover in the consolidation the gain or loss will be eliminated.

The amount of gain or loss on sale of land reported in consolidated income statement for 20X3.

Answer 10

To determine

Intercompany transfers:When intercompany transfer of asset occur, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by acquiring company, when the asset is transferred at book value no special adjustments are needed. But when the asset is transferred at more or less than the book value, the unrealized gain or loss is deferred until the asset is sold to unrelated party. Moreover in the consolidation, the gain or loss will be eliminated.

The amount of income should be assigned to the controlling shareholders in consolidated income statement for 20X3.

Answer 11

To determine

Intercompany transfers:When intercompany transfer of asset occur, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by acquiring company, when the asset is transferred at book value no special adjustments are needed. But when the asset is transferred at more or less than the book value, the unrealized gain or loss is deferred until the asset is sold to unrelated party. Moreover in the consolidation, the gain or loss will be eliminated.

The amount of income should be assigned to the controlling shareholders in consolidated income statement for 20X3.

Answer 12

To determine

Intercompany transfers:When intercompany transfer of asset occur, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by acquiring company, when the asset is transferred at book value no special adjustments are needed. But when the asset is transferred at more or less than the book value, the unrealized gain or loss is deferred until the asset is sold to unrelated party. Moreover in the consolidation the gain or loss will be eliminated.

Requirement 4

The consolidation entry related to land that appear in consolidation worksheet for 20X3.

Answer 13

To determine

Intercompany transfers:When intercompany transfer of asset occur, the parent company must make adjustments in preparing consolidated financial statements as long as the asset is held by acquiring company, when the asset is transferred at book value no special adjustments are needed. But when the asset is transferred at more or less than the book value, the unrealized gain or loss is deferred until the asset is sold to unrelated party. Moreover in the consolidation the gain or loss will be eliminated.

Requirement 4

The consolidation entry related to land that appear in consolidation worksheet for 20X3.

Answer 14

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Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 7 - Prob. 7.1Q Ch. 7 - Prob. 7.2Q Ch. 7 - Prob. 7.3Q Ch. 7 - Prob. 7.4Q Ch. 7 - Prob. 7.5Q Ch. 7 - Prob. 7.6Q Ch. 7 - Prob. 7.7Q Ch. 7 - Prob. 7.8Q Ch. 7 - Prob. 7.9Q Ch. 7 - Prob. 7.10Q

Solution Summary: The author explains that any gain or loss arising from intercompany transfer of assets by affiliates is eliminated, hence does not affect the consolidated income statement.

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Chapter 7 Solutions