Saddle Corporation is an 80%-owned subsidiary of Paso Company. On January 1, 20X1, Saddle sold Paso a machine for $50,000. Saddle's cost was $60,000 and the book value was $40,000. The machine had a 5-year remaining life at the time of the sale. A consolidated balance sheet only is being prepared on December 31, 20X3. The retained earnings of the controlling interest requires which of the following adjustments?
A) Debit $4,000
B) Debit $6,000
C) Debit $3,200
D) Debit $4,800
Correct Answer:
Verified
Q21: When preparing a consolidated balance sheet worksheet
Q24: On January 1, 20X1, Parent Company purchased
Q25: Company P Industries purchased a 70% interest
Q26: It is common for a parent firm
Q28: Company P has consistently sold merchandise for
Q32: Pilatte Company acquired a 90% interest in
Q33: On January 1, 20X1, Poplar Company acquired
Q34: Company P owns an 90% interest in
Q37: Which of the following is not true
Q41: A subsidiary company may have preferred stock
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents