質問: company a and company b are related companies subject to consolidation. during the year, company a... company a and company b are related companies subject to consolidation. during the year, company a sold office equipment to company b for $50,000 on a note receivable / payable that had an original purchase price of $100,000 and accumulated depreciation at the time of sale of $10,000. the portion of the elimination entry at the time of consolidation to reverse out the gain or loss booked on this transaction would be: question 13 options: a) debit gain on sale $40,000 b) credit loss on sale $40,000 c) credit loss on sale $10,000 d) debit gain on sale $10,000 simpson, inc. purchased 100% of the outstanding common stock of green, inc. on 1/1/20 for $700,000 in cash and stock. simpson, inc. accounts for the income of green, inc. using the simple equity method, and during the year green, inc. reported net income of $90,000 and declared and paid dividends of $60,000. assuming no other transaction between the two companies, the balance in “investment in green, inc.” on the books of simpson, inc. on 12/31/20 will be: question 15 options: a) $640,000 b) $0 c) $790,000 d) $730,000
回答: solution initial entry at the time of sale of equipment particular debit credit notes receivable a/c $ 50,000 loss on sale of office equipment a/c $ 40,000 to office equipment a/c $ 90,000 ($100,000-$10,000) now, at the time of consolidation the elimination entry would include credit loss on sale of office equipment amounting $40,000 conclusion hence the correct option is b) credit loss on sale $40,000