ADVANCE ACCOUNTING 401 Please help. Thanks

SoccerBoss
Category:
Accounting
Price: $5 USD

Question description

ACC401_Week5.docx

Work must be 100% original and it must be related to the question.  This is advance accounting 401 Chapter 5  I have attached some notes.

Consolidated Financial Statements – Intra-Entity Asset Transactions" Please respond to the following:

  • Per the textbook, no official FASB guidance exists on the assignment of income effects on non-controlling interest in the consolidation process, when either the parent transfers a depreciable asset to the subsidiary or vice versa. Suggest one (1) method of accounting for the income effects on the non-controlling interest that you consider most appropriate. Provide a rationale for your response.
  • Assume that company P (parent) uses the equity method to account for its investment in company S (subsidiary). Company P purchases inventory items from company S. According to FASB’s guidance, the accountant must remove the inter-company profit from Company S’s net income. Determine if the process permanently eliminates the profit from the non-controlling interest or merely shifts the profit from one period to the next. Provide support for your rationale.

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(Top Tutor) Daniel C.
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