In 2021 Pony Company purchased land from its subsidiary, Source Sandals, for $10,000,000. The land had a book value to Source Sandals of $7,000,000. In 2024 Pony Company sells the land to an outside party for $11,000,000. Required; a. Prepare the December 31, 2021 elimination entry needed for this intercompany land sale b. Prepare the December 31, 2022 elimination entry required for this intercompany land sale c. Prepare the December 31, 2024 elimination entry required for this intercompany land sale
In 2021 Pony Company purchased land from its subsidiary, Source Sandals, for $10,000,000. The land had a book value to Source Sandals of $7,000,000. In 2024 Pony Company sells the land to an outside party for $11,000,000. Required; a. Prepare the December 31, 2021 elimination entry needed for this intercompany land sale b. Prepare the December 31, 2022 elimination entry required for this intercompany land sale c. Prepare the December 31, 2024 elimination entry required for this intercompany land sale
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 75BPSB
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In 2021 Pony Company purchased land from its subsidiary, Source Sandals, for $10,000,000. The
land had a book value to Source Sandals of $7,000,000. In 2024 Pony Company sells the land to an
outside party for $11,000,000.
Required;
a. Prepare the December 31, 2021 elimination entry needed for this intercompany land sale
b. Prepare the December 31, 2022 elimination entry required for this intercompany land sale
c. Prepare the December 31, 2024 elimination entry required for this intercompany land sale
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