Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a company owns 90% of b company. a uses the equity

A Company owns 90% of B Company. A uses the equity method to account for...

50.1K

Verified Solution

Question

Accounting

A Company owns 90% of B Company. A uses the equity method to account for its investment. On the date of acquisition, The net book value of B was equal to the fair value of B.

A has $45,000 of separate company net income for 20X8. This does not include any equity income from B.

At the end of 20X8 A has $50,000 in the land account.

A has $28,000 of separate company net income for 20X8.

At the end of 20X8 B has $123,000 in the land account

  1. A sold land to B in 20X8. A recorded a $2,000 gain on this sale.

Required

1) What will be reported as consolidated net income attributable to the parent for 20X8?

2) What is the land balance on the consolidated balance sheet at 12/31/20X8?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students