Par Inc. owns 70% of Sent Inc's voting shares Sent purchased land for 560.000 and then sold it to Par on June 1o, 2019. for $90.000. Which of the following statements are TRUE regarding the worksheet consolidation entries needed on December 31. 2019 and 2020 to remove the effects of the intercompany sale of land? The December 31. 2019, worksheet consolidation entry includes a debit to Gain on Sale of Land of $30,000. The December 31, 2019, worksheet consolidation entry includes a credit Land of $30,000. The December 31, 2020, worksheet consolidation entry includes a debit to Investment in Sent of $21.000.
Par Inc. owns 70% of Sent Inc's voting shares Sent purchased land for 560.000 and then sold it to Par on June 1o, 2019. for $90.000. Which of the following statements are TRUE regarding the worksheet consolidation entries needed on December 31. 2019 and 2020 to remove the effects of the intercompany sale of land? The December 31. 2019, worksheet consolidation entry includes a debit to Gain on Sale of Land of $30,000. The December 31, 2019, worksheet consolidation entry includes a credit Land of $30,000. The December 31, 2020, worksheet consolidation entry includes a debit to Investment in Sent of $21.000.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 18E
Related questions
Question
![Par Inc. owns 70% of Sent Inc's voting shares. Sent purchased land for 560,000 and
then sold it to Par on June 10, 2019, for $90,000.
Which of the following statements are TRUE regarding the worksheet cosolidation
entries needed on December 31. 2019 and 2020 to remove the effects of the
Intercompany sale of land?
OThe December 31. 2019, worksheet consolidation entry includes a debit to Gain
on Sale of Land of $30,000.
The December 31, 2019. worksheet consolidation entry includes a credit Land
of $30,000.
The December 31, 2020, worksheet consolidation entry includes a debit to
Investment in Sent of $21.000.
The December 31, 2020, worksheet consolidation entry includes a debit to Land
of $9.000.
OThe December 31, 2020, worksheet consolidation entry includes a credit to Gain
on Sale of Land of $30,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe072f680-4c73-4386-b4db-def118fea4a2%2F5d16513e-b898-45bc-86cd-772304712389%2Fhqjvt2b_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Par Inc. owns 70% of Sent Inc's voting shares. Sent purchased land for 560,000 and
then sold it to Par on June 10, 2019, for $90,000.
Which of the following statements are TRUE regarding the worksheet cosolidation
entries needed on December 31. 2019 and 2020 to remove the effects of the
Intercompany sale of land?
OThe December 31. 2019, worksheet consolidation entry includes a debit to Gain
on Sale of Land of $30,000.
The December 31, 2019. worksheet consolidation entry includes a credit Land
of $30,000.
The December 31, 2020, worksheet consolidation entry includes a debit to
Investment in Sent of $21.000.
The December 31, 2020, worksheet consolidation entry includes a debit to Land
of $9.000.
OThe December 31, 2020, worksheet consolidation entry includes a credit to Gain
on Sale of Land of $30,000.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning