Book value exceeded the transfer price problem


An intra-entity sale took place whereby the book value exceeded the transfer price of a depreciable asset. Which statement is true for the year following the sale?

A. A worksheet entry is made with a debit to retained earnings for an upstream transfer.

B. No worksheet entry is necessary

C. A worksheet entry is made with a debit to investment in subsidiary for a downstream transfer.

D. A worksheet entry is made with a credit to retained earnings for an upstream transfer.

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Accounting Basics: Book value exceeded the transfer price problem
Reference No:- TGS069794

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