Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Unrealized profit on Property, Plant and EquipmentWhere one company sells an item of PPE to the other company in the group then, this will lead to two main problems.a) The selling company will report on unrealized profit because the item of PPE is still used within the group. Whereas the PPE of the buying company will be overstated by the unrealized profit.An entry is thus required to reverse the unrealized profit and the overstatement. Relevant entriesi) If the holding company made the saleDR. Group retained profits CR. Group PPE(With the full unrealized profit)ii) If the subsidiary company made the sale, DR. Group retained profits (with holding company’s share of unrealized profit) DR Minority interest (With unrealized profit) CR. Group PPE (With the full unrealized profit)b) The buying company will charge excess depreciation due to the inflated price of PPE (excess depreciation is the difference between charged to date based on the actual cost of PPE)This means, that the profits of the buying company are understated and PPE is also understated due to the excess depreciation.An entry is thus required to write back the depreciation and also the reserve the understatement of the PPE. The following entries are relevant:If the holding company made the sale and thus the subsidiary company is charging the excess depreciation.DR Group PPE (With the full excess depreciation) CR. Group retained profits (with holding company share of excess depreciation) CR M2 (With the minority’s share of excess depreciation)If subsidiary company made the sale and thus holding company is charging the excess depreciation,DR Group PPE CR Group retained profits(With the full excess depreciation)
calculate the ratios of the company called ''Apple''
provide 5% for doubtful debt what is the journal entry
1. A fellow student says to you: "The statement of cash flows is the easiest of the basic financial statements to prepare because you know the answer before you start. You compare
Accounts required and their purpose a. Branch Current Account (Head Office Books) Records all transactions branch and head office; The balance represents the investmen
Explain the mechanism that states use to prevent the double taxation of the income of a corporation doing business in two or more states.
Final accounts 1) Examination questions – two types of problems arise in examinations: transfers between head office and branch are made at cost; or Transfers bet
While many people know that Sonora, Mexico is a beautiful vacation spot, it is also a large furniture manufacturing location in North America. Guillermo Navallez made furniture for
Suppose that the annual rate of interest is 4%. (a) What is the monthly rate? (b) Consider a 3-year lease on a car that is worth $20,000 today. The first payment on the lease
Payback Period and Net Present Value XYZ Software, Inc., has the following mutually exclusive projects. Year Project A Project B
1. Think about the transactions listed below. a. A company obtains a $10,000 loan from a bank. b. A company purchases $15,000 of inventory from its suppliers. They paid $5,000 toda
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd