In: Accounting
Pod Company, a 100% owned subsidiary of Pea Company, sold land to Pod on March 1, 2017, for $65,000. The land originally cost Pod $50,000. Pea still owns the land at the end of 2018.
On a consolidation worksheet, what adjustment would be made for 2017 regarding the land transfer?
On a consolidation worksheet, what adjustment would be made for 2018 regarding the land transfer?
Gain on sale of land A/c Dr.... $ 15,000
To Land A/c ..............................$ 15,000
Retained earning A/c Dr..... $ 15,000
To Land A/c ..............................$ 15,000