Asked by
Austin Farrall
on Dec 10, 2024
Verified
Macklin Co. owned 70% of Holland Corp. During 2021, Macklin sold to Holland land with a book value of $51,000. The selling price was $75,000. For purposes of the December 31, 2021 consolidated financial statements, at what amount should the land be reported?
A) $7,200.
B) $24,000.
C) $51,000.
D) $67,800.
E) $75,000.
Consolidated Financial Statements
Financial statements that present the assets, liabilities, equity, income, expenses, and cash flows of a parent company and its subsidiaries as one single entity.
- Identify the effects of intra-entity asset transfers, such as equipment and land, on consolidated financial statements.
Verified Answer
CH
Learning Objectives
- Identify the effects of intra-entity asset transfers, such as equipment and land, on consolidated financial statements.