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1. P Co. buys 60% of the outstanding common stock of S Co. On this date, P has land with a book value of $200,000 and a fair value of $300,000. S has land with a book value of $100,000 and a fair value of $200,000. If a consolidated balance sheet were prepared on this date, at what amount would land be reported?

5. During 2023, P Company sells inventory to its wholly-owned subsidiary, S Company, for $120,000. This price includes a 20% mark-up above cost. On December 31, 2023 (the year-end of both companies), S Company still has $36,000 of this inventory in stock. The remaining $84,000 has been sold in third-party transactions. What is the consolidation worksheet entry that is necessary at December 31, 2023?

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During 2023, P Company sells inventory to its wholly-owned subsidiary, S Company, for $120,000. This price includes a 20% mark-up above cost. On December 31, 2023 (the year-end of both companies), S Company still has $36,000 of this inventory in stock. The remaining $84,000 has been sold in thirdparty transactions. What is the consolidation worksheet entry that is necessary at December 31, 2023? P Co. buys 60% of the outstanding common stock of S Co. On this date, P has land with a book value of $200,000 and a fair value of $300,000. S has land with a book value of $100,000 and a fair value of $200,000. If a consolidated balance sheet were prepared on this date, at what amount would land be reported? A. $500,000 B. $480,000 C. $400,000 D. $320,000

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