What adjustment would be made regarding the land transfer, Accounting Basics

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What adjustment would be made regarding the land transfer

Stiller Company, an 80% owned subsidiary of Leo company, purchased land from leo on March 1, 2010, for $75,000. The land originally cost Leo $60,000. Stiller reported net income of $125,000 and $140,000 for 2010 and 2011, respectively. Leo uses the equity method to account for its investment. On a consolidation worksheet, what adjustment would be made for 2010 regarding the land transfer?

A. Credit gain for $50,000

B. Debit gain for $50,000

C. Debit land for $15,000

D. Credit land for $15,000

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Accounting Basics: What adjustment would be made regarding the land transfer

Reference No:- TGS069798

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Recent Questions Asked Accounting Basics

Q : Book value exceeded the transfer price problem

Q : Find the consolidated cost of goods sold

Q : Compute consolidated cost of goods sold

Q : Compute collin share of smeder net income

Q : What adjustment would be made regarding the land transfer

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Request for Solution File

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Accounting Basics: What adjustment would be made regarding the land transfer

Reference No:- TGS069798

Recent Questions Asked Accounting Basics

Q : Book value exceeded the transfer price problem

Q : Find the consolidated cost of goods sold

Q : Compute consolidated cost of goods sold

Q : Compute collin share of smeder net income

Q : What adjustment would be made regarding the land transfer

Q : Ricardian equivalence

Q : Compute the gain or loss on the intra-entity sale of land

Q : Parent company currency for all transactions

Q : Inventory under the temporal method

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