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?
A. A worksheet entry is made with a debit to investment in subsidiary for an upstream transfer.
B. A worksheet entry is made with a debit to retained earnings for an upstream transfer, regardless of the method used to account for the investment.
C. A worksheet entry is made with a debit to investment in subsidiary for a downstream transfer.
D. A worksheet entry is made with a credit to investment in subsidiary for a downstream transfer when the parent uses the equity method.
E. No worksheet entry is necessary.
Answer: D
You might also like to view...
Dividing the net income for the year by the average capital for the year is the calculation for the
a. quick ratio; b. current ratio; c. return on retained earnings; d. return on equity; e. return on shares
When a customer returns goods, the company decreases the Sales account
Indicate whether the statement is true or false
Which of the following decision-making techniques would be MOST appropriate for large groups of people who do not have to meet?
a. Delphi technique b. Ringi technique c. Nominal group technique d. Stepladder technique
Acme Global provides its employees with the opportunity to experience job rotation. This allows the employees to see more of what goes on in the organization and how each job functions. Acme Global is developing its employees through ________.
A. formal education B. experience C. informal education D. employee assessment E. alternative assessment