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1. In 2013, company A sold inventory costing $100 to its fully-owned subsidiary company B for $150. The entire inventory remains with company B at the end of 2013. What journal entry should be recorded (*G) at the beginning of 2014 to eliminate the gain from intra-entity transaction? (Assuming that the parent uses the equity method)
2. What if only half of the inventories from the intra-entity transaction remain with company B at the end of 2013?
The airline treated Al and his family to a one-week all-expenses-paid vacation at a resort near his home. This benefit was awarded because of Al’s outstanding safety record. The value of the vacation was $2,300. Which of these benefits are taxabl..
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Jerry's assistant Jan Kramer, suggests that they can still meet their deadline if they use "direct conversion" rather than "parallel conversion". Assuming that you are CIO of the company, how would you react to Jan's suggestion? Discuss.
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