For each of the following situations (1 - 10), select the correct entry (A - E) that would be required on a consolidation worksheet.(A) Debit retained earnings.(B) Credit retained earnings.(C) Debit investment in subsidiary.(D) Credit investment in subsidiary.(E) None of these answer choices are correct.________ 1. Upstream beginning intra-entity gross profit on inventory, using the initial value method of accounting.________ 2. Downstream beginning intra-entity gross profit on inventory, using the initial value method of accounting.________ 3. Upstream ending intra-entity gross profit on inventory, using the initial value method of accounting.________ 4. Downstream ending intra-entity gross profit on inventory, using the initial value method of accounting.________ 5. Upstream transfer
of depreciable assets, in the period after transfer, where subsidiary recognizes a gain, using the initial value method of accounting.________ 6. Downstream transfer of depreciable assets, in the period after transfer, where parent recognizes a gain, using the initial value method of accounting.________ 7. Upstream transfer of land, in the period after transfer, where subsidiary recognizes a loss, using the initial value method of accounting.________ 8. Downstream transfer of land, in the period after transfer, where parent recognizes a loss, using the initial value method of accounting.________ 9. Eliminate income from subsidiary, recorded under the equity method of accounting.________ 10. Eliminate recorded amortization of acquisition-date fair value over book value, recorded under the equity method of accounting.
What will be an ideal response?
(1.) A; (2.) A; (3.) E; (4.) E; (5.) A; (6.) A; (7.) B; (8.) B; (9.) D; (10.) C.
You might also like to view...
The general idea of managing versus leading is that
a. Managing focuses on the day-to-day activities b. Leading maintains status quo c. Managing looks at the big picture d. Leading focuses on the day-to-day activities
Which of the following serves as the highest authority for tax research, planning, and compliance activities?
A) Internal Revenue Code B) Income Tax Regulations C) Revenue Rulings D) Revenue Procedures
The aging of the population, changes in ethnic composition, and effects of the baby boom are considered:
A. global changes. B. macroeconomic changes. C. sociocultural changes. D. demographic changes.
Answer the following statements true (T) or false (F)
1. A department can never be considered to be a profit center. 2. A cost center does not directly generate revenues. 3. A selling department is usually evaluated as a profit center. 4. Product lines are often evaluated as profit centers. 5. A profit center generates revenue, incurs costs, and has the authority to make significant investing decisions.