User Account

All Pages

What was the intercompany sale impact on the consolidated

Assignment Help Financial Accounting
Reference no: EM132941734

On December 31, 2017, Zack Corporation sold equipment with a three-year remaining useful life and a book value of $21,000 to its 70%-owned subsidiary, Necole Company, for a price of $27,000. Zacke bought the equipment four years ago for $49,000. The salvage value is zero. Straight-line depreciation is used by both companies.

Problem 1: After eliminating/adjusting entries are prepared, what was the intercompany sale impact on the consolidated financial statements for the year ended December 31, 2017?

A) Consolidated Net Income Consolidated Net Assets
No effect No effect
B) Consolidated Net Income Consolidated Net Asset
No effect Increased
C) Consolidated Net Income Consolidated Net Asset
Decreased Decreased
D) Consolidated Net Income Consolidated Net Asset
Decreased No effect

Reference no: EM132941734

Questions Cloud

What the truck account was : HHH Corporation purchased a truck with a useful life, In the eliminating/adjusting entries on consolidation working papers for 2019, the Truck account was
What aaa would report investment income from nnn of : NNN had separate income of $100,000 in 2015. The parent company, AAA Incorporated, owns 80% of NNN. AAA would report investment income from NNN in 2015 of
Competitive advantages of netflix business model : What were the competitive advantages of Netflix's business model? What characteristics of the Netflix information system define it as a strategic information sy
What consolidated depreciation expense would be : If XXX failed to make year-end adjustments/eliminations on the consolidated working papers in 2015, consolidated depreciation expense for 2015 would be
What was the intercompany sale impact on the consolidated : After eliminating/adjusting entries, What was the intercompany sale impact on the consolidated financial statements for the year ended December 31, 2017?
What is the equilibrium rate of return on one-year treasury : The maturity risk premium is zero. Ignore the cross-product term, what is the equilibrium rate of return on a 1-year Treasury bond?
What pretax amounts related to lease would georgia-atlantic : What pretax amounts related to the lease would Georgia-Atlantic report in its income statement for the year ended December 31, 2021?
How much is in the account after two years : How much is in the account after 2 years? A credit union pays interest of 8% per annum compounded quarterly on a certain savings plan.
Why does psychological contract exist : Why does psychological contract exist in the above case? Explain THREE (3) reasons for the existence with reference to the above case. You may use example

Reviews

Write a Review

Financial Accounting Questions & Answers

  Make memo to the owners explaining why cannot do

Make memo to the owners explaining why cannot do. Stadacona Road and 1339828 Ontario Ltd. are owned by the same ownership group of four people.

  Illustrate what is the price of this stock today given

Illustrate what is the price of this stock today given a required return of 12 percent? Your tax rate is 31 percent and your required return on this project is 11 percent. What bid price per stamp should you submit?

  Determine the depreciation for the current fiscal year

Determine the depreciation for the current fiscal year and for the fiscal year by the straight-line method. Equipment acquired at a cost of $98,000

  Why should choose the cash basis accounting instead

Why should choose the cash basis accounting instead of the accrual basis accounting? Many people feel that accrual basis accounting leads to more accurate.

  Determine the covered interest rate parity

According to the Covered Interest Rate parity (CIRP), is the GBP underpriced/overpriced in the actual forward contract? Which of the following is true?

  What are the initial recognition and subsequent measurements

What are the initial recognition and subsequent measurements of this transaction? MPL paid $1.2 million to acquire the nontransferable rights to distribute

  Calculate the breakeven point for the products

Find out the cost of raw material purchased from the data and prepare process A account and calculate the breakeven point for the products on an overall basis.

  Prepare a data flow diagram of all operations described

Prepare a data flow diagram of all operations described. At the end of each week, the production planning department prepares a master production schedule

  Across organizations operating in different countries

The adoption of a single set of financial accounting standards is important for multinational companies because: A single set of reporting standards should result in consolidated financial statements that are more comparable across organizations oper..

  Evaluate the net production costs

1) Materials purchased through January 2) Cost of Goods Sold through January 3) Overhead applied through January 4) Underapplied and Overapplied overhead for January (you have to tell me both the amount and whether it is over or under for ..

  How much risk reduction could achieve

If this portfolio is not efficient, how much risk reduction could you achieve, at no sacrifice in expected return, by making your portfolio an efficient one?

  What would be the net book value of the property

What would be the net book value of the property (land and building) at the end of year 2? (Amounts to be deducted should be indicated by a minus sign.)

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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