Advanced Accounting Essay

1. Pratt Company owns 80% of Storey Company’s common stock.   During 2008, Storey sold $400,000 of merchandise to Pratt.   At December 31, 2008, one-third of the merchandise remained in Pratt’s inventory.   In 2008, gross profit percentages were 25% for Pratt and 30% for Storey.   The amount of unrealized intercompany profit that should be eliminated in the consolidated statements is
2. Pratt Company owns 80% of Storey Company’s common stock.   During 2008, Storey sold $400,000 of merchandise to Pratt.   At December 31, 2008, one-third of the merchandise remained in Pratt’s inventory.   In 2008, gross profit percentages were 25% for Pratt and 30% for Storey.   The amount of cost of goods sold in the consolidated statements is
3. Sales from a parent to a subsidiary are called
4. Sales from to parent to from subsidiary are called
5. Sales from a subsidiary to are called
6. In determining controlling interest in consolidated income in the consolidated financial statements, unrealized intercompany profit on inventory acquired by a parent from its subsidiary should
7. P Company acquired an 70% interest in S Company on January 1, 2011, for $270,000 cash when S Company had common stock of $150,000 and retained earnings of $150,000.   All excess was attributable to plant assets with a 10 year life.   S Company made $30,000 in 2011 and paid no dividends.   P Company’s separate income in 2011 was $375,000.   Excess depreciation expense in 2011 was
8. P Company acquired an 70% interest in S Company on January 1, 2011, for $270,000 cash when S Company had common stock of $150,000 and retained earnings of $150,000.   All excess was attributable to plant assets with a 10 year life.   S Company made $30,000 in 2011 and paid no dividends.   P Company’s separate income in 2011 was $375,000.   Excess depreciation expense in 2011 was
9. P Company acquired an 70% interest in S Company on January 1, 2011, for $270,000 cash when S Company had common stock of $150,000 and retained earnings of... [continues]

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