Stark Company, a 90% owned subsidiary of Parker, Inc., sold land to Parker on May 1, 2017, for $80,000. The land originally cost Stark $85,000. Stark reported net income of $200,000, $180,000, and $220,000 for 2017, 2018, and 2019, respectively. Parker sold the land purchased from Stark in 2017 for $92,000 in 2019. Both companies use the equity method of accounting. What is gain or loss to the consolidated entity in 2019
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Stark Company, a 90% owned subsidiary of Parker, Inc., sold land to Parker on May 1, 2017, for $80,000. The land originally cost Stark ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Which statement is prepared for only one date? a. Statement of owner's equity b. Balance sheet c. Income statement d. Statement of cash flows
Answers (1)
GH Company has $5000 of debt and $20,000 of equity. GH pays 5% interest on all of itsdebt. GH has an equity beta of 2. The market risk premium is 5.5% and the risk free rateof return is 2%. WJK has a 30% marginal tax rate. a.
Answers (1)
What are consequences of rapid inflation? (Select all that apply.) Savings accounts become less desirable because interest earned is lower than inflation Individual purchasing power increases, which results in an increase in demand.
Answers (1)
You would like to establish a trust fund that would pay annual payments to your heirs of $100,000 a year forever. You expect the trust fund to earn an average return of 6.5 percent.
Answers (1)
The following standard cost card is provided for Navid Company's Product A: Direct material (2 lbs. @ $5.00 per lb.) $10.00 Direct labor (1 hr @ $8.00 per hr.) 8.00 Variable overhead (1 hr. @ $3.00 per hr.) 3.00 Fixed overhead (1 hr. @ $2.00 per hr.
Answers (1)
New Questions in Business
Presented below are three receivables transactions. Indicate whether these receivables are reported as accounts receivable, notes receivable, or other receivables on a balance sheet. -Sold merchandise on account for $64,000 to a customer.
Answers (1)
Barans Realty Co. pays weekly salaries of $18,000 on Monday for a six-day workweek ending the preceding Saturday. Journalize the necessary adjusting entry at the end of the accounting period, assuming that the period ends on Friday.
Answers (1)
Montana Company was authorized to issue 200,000 shares of common stock. The company had issued 50,000 shares of stock when it purchased 10,000 shares of treasury stock.
Answers (1)
The following items caused the only differences between pretax financial income and taxable income. 1.
Answers (1)
Which of the following characteristics would lead the auditor to assess control risk at a higher level? a. It is difficult for the auditor to determine or gain access to the organization or individuals who own and/or control the entity. b.
Answers (1)