[jeff]

FAR Resources:

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Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Anonymous]

CR7- From my understanding- The eliminating entry would continue until its sold to an outside party and RE would debited and land would be credited to eliminate any intercompany profits. Retained Earning will continue to be debited in subsequent years because the this account would be closed. Since, the parent was the seller and the subsidiary was the purchaser, there is no need to divide gains between the two companies.

Hope this helps.

[Anonymous]

CR7- From my understanding- The eliminating entry would continue until its sold to an outside party and RE would debited and land would be credited to eliminate any intercompany profits. Retained Earning will continue to be debited in subsequent years because the this account would be closed. Since, the parent was the seller and the subsidiary was the purchaser, there is no need to divide gains between the two companies.

Hope this helps.

[Guti]

Thanks Donica, I know the IS closes to RE,but didn’t we eliminate the gain and restore the land to its original value by doing the above JE? When the IS closed to RE , the gain was already eliminated in the IS. Why do it again next year? The balance sheet was also adjusted.

FAR-84
AUD-
REG-
BEC-

[Guti]

Thanks Donica, I know the IS closes to RE,but didn’t we eliminate the gain and restore the land to its original value by doing the above JE? When the IS closed to RE , the gain was already eliminated in the IS. Why do it again next year? The balance sheet was also adjusted.

FAR-84
AUD-
REG-
BEC-

[Anonymous]

CR7- In an slide I read, the reason you keep to the eliminating entry year after year until the land is sold is so you can remove the effects of the unrealized gain or loss.

Hope this helps.

[Anonymous]

CR7- In an slide I read, the reason you keep to the eliminating entry year after year until the land is sold is so you can remove the effects of the unrealized gain or loss.

Hope this helps.

[Anonymous]

you can find it here:https://www.ocf.berkeley.edu/~cchang/pdf%20docs/ch006.pdf slide 6-22 (lower right corner)

[Anonymous]

you can find it here:https://www.ocf.berkeley.edu/~cchang/pdf%20docs/ch006.pdf slide 6-22 (lower right corner)

[Guti]

Thanks Donica, you are the lady!

FAR-84
AUD-
REG-
BEC-

[Guti]

Thanks Donica, you are the lady!

FAR-84
AUD-
REG-
BEC-

[Guti]

Donica, have you taken becker's final yet?

FAR-84
AUD-
REG-
BEC-

[Guti]

Donica, have you taken becker's final yet?

FAR-84
AUD-
REG-
BEC-

[Anonymous]

Nope not yet…… I think I will postpone until April. I am still studying. now. I really don't think I will be done by the 14th… to give myself two weeks for review.

[Anonymous]

Nope not yet…… I think I will postpone until April. I am still studying. now. I really don't think I will be done by the 14th… to give myself two weeks for review.

[Zackrampage]

Ahh rewriting notes almost done though. Its all mcq and audio for 2 weeks till the test ahhhh :/

FAR - 62 , End of aug 2015
BEC - 67, 67
AUD - TBD
REG - TBD

[Author]

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