Dithers Inc. acquired all of the common stock of Bumstead Corp. on January 1, 2013. During 2013, Bumstead sold land to Dithers at a gain. No consolidation entry for the sale of the land was made at the end of 2013. What errors will this omission cause in the consolidated financial statements?

Question

Quizplus · Accepted Answer

The Answer of Dithers Inc. acquired all of the common stock of Bumstead Corp. on January 1, 2013. During 2013, Bumstead sold land to Dithers at a gain. No consolidation entry for the sale of the land was made at the end of 2013. What errors will this omission cause in the consolidated financial statements?