Problem
A Company owns 60% of B Company.
a) In 20X1 A sold land to B for $400,000. The land had a cost to A of $150,000.
b) In 20X4 B sold the land it had purchased from A in the transaction above. B sold the land to an unrelated party for $430,000.
How much gain on the 20X4 land sale will be included in the consolidated net income for 20X4?
A owns 80% of B.
a) On 1/1/20X4, A sells a machine to B and records a $30,000 gain.
b) On that date, the machine has a remaining useful life of 15 years
What overall effect will all the consolidating worksheets adjustments related to this transaction have on consolidated net income for 20X4?