During 2020, Parent sells land to Subsidiary for $226,800. The land had a book value of $159,000. The land is then sold to an unaffiliated party for $303,000 in 2024. Required: a. Prepare the consolidation entry related to the land sale for 2020. b. Prepare the consolidation entry related to the land sale for 2021. c. Prepare the consolidation entry related to the land for 2024. d. What will be the gain on sale on the 2024 consolidated income statement?

During 2020, Parent sells land to Subsidiary for $226,800. The land had a book value of $159,000. The land is then sold to an unaffiliated party for $303,000 in 2024. Required: a. Prepare the consolidation entry related to the land sale for 2020. b. Prepare the consolidation entry related to the land sale for 2021. c. Prepare the consolidation entry related to the land for 2024. d. What will be the gain on sale on the 2024 consolidated income statement?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 8RE

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