What account would be credited

Assignment Help Financial Accounting
Reference no: EM132838735

Question - Big Co. owns 60% of Little Co common stock. On 1/1/23 Big Co sold a patent to Little Co for $32,000. The patent had a book value of $20,000 on that date, with a 4 year remaining useful life.

On 5/1/26 Little sells the patent to a third party for $20,000.

Little Co reports earnings of $50,000 each year.

Big uses the FULL equity method to account for their investment in Little.

In 2026 the patent is sold to some third party. In the elimination entries related to this intercompany sale, what account __________ would be credited, for what amount ________?

Reference no: EM132838735

Questions Cloud

Assess the suitability of this investment : The company's tax is 30% and the after-tax cost of capital is 12 %. Assess the suitability of this investment using both discounting and non-discounting methods
Discuss the role of the internet in a research project : Discuss the role of the Internet in a research project: Explain the advantages and disadvantages.
Journalize the entries to record the april : Journalize the entries to record the Apr. 1 Issued the bonds for cash at their face amount and Paid the interest on the bonds. 2013 selected transactions
What are the expected one-year interest rates : a. What are the expected one-year interest rates next year and the following year?
What account would be credited : In the elimination entries related to this intercompany sale, what account __________ would be credited, for what amount ________
What is nintendo intended strategy : What is Nintendo's intended strategy? What are major challenges Nintendo is likely to face as it continues to pursue its strategy
Do have any reservations about the decision : Should you accept this deal or not? Explain how you use IRR in your decision analysis. Do you have any reservations about this decision? Why or why not?
Identify the main account or group of accounts affected : Berjaya Gemilang Company, Identify the main account or group of accounts affected by these risks and how the risks would be affected the audit plan.
Explain the steps involved in developing a qspm : How are the SWOT Matrix, SPACE Matrix, BCG Matrix, IE Matrix, and Grand Strategy Matrix similar? How are they different?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Draw a market where the dollar is in equilibrium

International Financial Management, Draw a market where the dollar is in equilibrium. Then assume there is a US income tax hike.

  What is the total manufacturing cost assigned to job

Mickley Company’s predetermined overhead rate is $23.00 per direct labor-hour and its direct labor wage rate is $15.00 per hour. The following information pertains to Job A-500: Direct materials $210 Direct labor $150. What is the total manufacturing..

  Prepare all necessary journal entries

Prepare all necessary journal entries for the year 2014 and calculate the amount of gross profit that would be recognized each year from installment sales.

  Engage in imprudent budgeting practice by authorizing

Did the town of true dale engage in imprudent budgeting practice by authorizing a great amount of expenditures than revenues estimated for the year, or potentially violate town or state balanced budget laws?

  Find what steps taken by louis vuitton in order to ensure

Even the Best Have to Get Better. What steps should be taken by Louis Vuitton in order to ensure that production meets demand?

  Enter the given transactions of an antiques shop

Enter the following transactions of an antiques shop in the accounts and extract a trial balance as at 31 March 2017.- Started in business with £8,000 in the bank.

  Calculate to 4 decimal places the sf cross-rate

Calculate to 4 decimal places the SF/£ cross-rate which Sunil should quote to his British customers. SF in Zurich: 1.8900- 1.8950 SF/1$

  Determine the Net Business Income

Determine the 2018 Net Business Income for Accounting Purposes based the company's Net Business Income for Taxation Purposes

  Labor data for making one gallon of finished product

Labor data for making one gallon of finished product in Tang Company are as follows: (1) Price—hourly wage rate $13.75, payroll taxes $0.52, and fringe benefits $1.54. (2) Quantity—actual production time 1.21 hours, rest periods and cleanup 0.34 hour..

  Determine the yield to maturity

In 1998 Fischer Corp. issued bonds with an 8 percent coupon rate and a $1,000 face value. The bonds mature on March 1, 2023. If an investor purchased one of these bonds on March 1, 2008, determine the yield to maturity if the investor paid $1,050 ..

  Evaluating two investment projects

Care Cat, Inc., is evaluating two investment projects, each of which requires and up-front expenditure of $1.5 million.

  Determine balances of accounts affected by adjusting entries

Journalize the adjusting entries. Add additional accounts as needed and determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trialbalance.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd