What are the intercompany item

Assignment Help Accounting Basics
Reference no: EM131775573

Problem - Intercompany Transactions. P, S1, and S2 Corporations have filed consolidated tax returns for several years. In 2010, S1 sells land to S2 for $275,000. S1 purchased the land for $120,000 several years ago and has held it for possible expansion. S2 constructs a new plant facility on the land. In 2012, S2 sells the land and the plant facility to a third party for cash, with $400,000 of the sales price attributable to the land.

a. What are the intercompany item, the corresponding item, and the recomputed corresponding item for this intercompany transaction?

b. In what year(s) are S1's gain or loss and S2's gain or loss included in consolidated taxable income?

Reference no: EM131775573

Questions Cloud

Discuss effective-interest method of bond amortization : the partial bond discount amortization schedule for Syam Corp., which uses the effective-interest method of amortization
Prepare flexible budgets for factory overhead : Required - Prepare flexible budgets for factory overhead at the 1,000, 2,000 and 4,000 unit levels
Analyse the current financial health of the company : 1. Analyse the current financial health of the company 2. Assess the materials and labor costs
Determine the pressure-defined hydraulic resistance : In turbulent flow, the volume flow rate is expressed in terms of head as q c = h, where c is a constant. Determine the pressure-defined hydraulic resistance.
What are the intercompany item : What are the intercompany item, the corresponding item, and the recomputed corresponding item for this intercompany transaction
Period moving average forecast for week : Given the data below, compute the 3-period moving average forecast for Week 6, given the weights of 50%, 30% and 20%. (You may "copy-and-paste" data into Excel
Relationship-liquid resistance of valve and volume flow rate : The kinetic energy loss is measured for a valve corresponding to three values of the flow rate, and the following values are obtained: qV1 = 0.1 m3 /s.
Describing the analysis that the company should do : Write a short memo to Ralph Sampson describing the analysis that the company should do before it makes this decision
Determining the planning and control : Dr. Jones, a dentist, wants to increase the size and profitability of his business by building a reputation for quality and timely service.

Reviews

Write a Review

Accounting Basics Questions & Answers

  A fleet of refrigerated deliverytrucks is acquired on

a fleet of refrigerated deliverytrucks is acquired on january 5 2008 at a cost of 830000 withan estimated useful life

  Anita vasquez received 210000 from her mothers estate she

anita vasquez received 210000 from her mothers estate. she placed the funds into the hands of a broker who purchased

  Prepare general journal entries necessary to record budget

Prepare the general journal entries necessary to record the budget and operating transactions 1- 7

  Prepare adjusting entries

Prepare adjusting entries for the seven items described above.

  Which nation goods become more attractive

In each of the following scenarios, suppose that the two nations are the only trading nations in the world. Given inflation and the change in the nominal.

  The fasb publishes its accounting standards codification

The FASB publishes its Accounting Standards Codification (ASC) as the source of accounting and reporting guidance for  hospitals.

  Assume significant influence was acquired

Assume significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year.

  Morris industries has a capital structure of 55 percent

morris industries has a capital structure of 55 percent common stock 10 percent preferred stock and 45 percent debt.

  How should inline account for warranty claims?

Inline Incorporated manufactures skates and equipment for in-line skating. The company offers a one-year warranty on all products. During 2012, the company recorded net sales of $3,887.4 million. Historically, about 2% of all sales are returned under..

  Tfc decision to expand to the west coast market

From the scenario, cite your forecasting conclusions that support TFC's decision to expand to the West Coast market. Speculate as to whether or not the agency conflict discussed in the scenario could become a roadblock to your conclusions. Prov..

  The costofan intangileasset with a infitsuseful life is

the costofan intangileasset with a infitsuseful life is amortizaed intangibles typically have no residual values so the

  Brewer company is considering purchasing a machine that

brewer company is considering purchasing a machine that would cost 464610 and have a useful life of 7 years. the

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