Upstream intercompany sale of non-depreciable assets


In years subsequent to the upstream intercompany sale of nondepreciable assets, the necessary consolidated workpaper entry under the cost method is to debit the:

a) Noncontrolling interest and Retained Earnings (Parent) accounts, and credit the nondepreciable asset.

b) Retained Earnings (Parent) account and credit the nondepreciable asset.

c) Nondepreciable asset, and credit the Noncontrolling interest and Investment in Subsidiary accounts.

d) No entries are necessary.

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Accounting Basics: Upstream intercompany sale of non-depreciable assets
Reference No:- TGS087068

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