Evaluate eliminating entery required for financial statement

Reference no: EM1374127

Cartwright, Inc. has $1,000,000 of 10 percent bonds outstanding on December 31, 20X8. On 1st January, 20X9, Adam Corp., an 80%-owned subsidiary of Cartwright, Inc., purchases a $250,000 part of Cartwright, Inc.'s outstanding bonds in market for $245,000. Interest accrued by 12/31/X9 is $12,500.

Evaluate the eliminating entries required for the 20X9 consolidated financial statements.

Offer correct eliminating entries essential for the 20X9 consolidated financial statements. 100%

Show when gains or losses on intercompany sales of depreciable assets could be recognized on a consolidated basis and explain the eliminating entry needed to adjust the consolidated financial statements when purchasing affiliate sells a depreciable asset that was acquired from other affiliate.

Reference no: EM1374127

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