Elimination of Intercompnay Sales of Depreciable Assets

Elimination of Intercompnay Sales of Depreciable Assets | Advanced Accounting CPA Exam FAR

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5 жыл бұрын

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Gains or losses on intercompany sales of depreciable assets are recognized either when the asset is sold to outsiders, or gradually over time as it is depreciated.
Explain the term “realized through usage.”
Accumulated depreciation should be presented in the consolidated balance sheet based on the cost of the asset to the affiliated group, and depreciation expense should be presented in the consolidated income statement also based on the cost to the affiliated group.
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Пікірлер: 13

@raedbamoudah2512 4 жыл бұрын

I got some difficulties in understanding my advance accounting class, after i saw this i got it, Prof Farhat is amazing in simplifying the complicated things, Many thanks Dr

@joya5866 5 жыл бұрын

I wanna say thank you so much! I’ve been using Becker for my cpa for a while but it’s hard for me to understand something and luckily I found your lectures, which are amazing helpful now I have some confidence that I can pass my cpa really appreciate your generous share !

@AccountingLectures 5 жыл бұрын

Hi Joy, I agree with you. Yaeger does not teach the material. have you considered Yaeger CPA review: egercpareview.com Please subscribe and share the website on your social media and connect with me on Facebook and LinkedIn: website: www.farhatlectures.com Facebook: facebook.com/accountinglectures/ LinkedIn: www.linkedin.com/in/mansour-farhat-cpa-cia-cfe-macc-245342

@sheygiya13 2 жыл бұрын

I use this for my work. You are a life saver Professor!

@Siddhi-Shlokas 4 жыл бұрын

I was breaking my head for subsequent year entries, why again we are passing similar entries in the second year similar to first year, while reading books. But, Prof Farhat's lecture, one sentence cleared all my doubt : "the work papers entries are not permanent , therefore they are gone". Much respect to you Prof for simplifying the concept..

@asaprossy2733 9 ай бұрын

In January 2013, S Company, an 80% owned subsidiary of P Company, sold equipment to P Company for $1,980,000. S Company’s original cost for this equipment was $2,000,000 and had accumulated depreciation of $200,000. P Company continued to depreciate the equipment over its 9 year remaining life using the straight-line method. This equipment was sold to a third party on January 1, 2017 for $1,440,000. What amount of gain should P Company record on its books in 2017?

@thokozanisishi1748 2 жыл бұрын

Thank You professor :-), this helped me a lot.

@AccountingLectures 2 жыл бұрын

Most welcome. This is my advanced accounting course link: farhatlectures.pathwright.com/library/advanced-accounting/94016/about/

@lifenwang6730 5 жыл бұрын

Thank you professor, you are the best!!!!

@AccountingLectures 5 жыл бұрын

Hi LifenPlease subscribe and share the website on your social media and connect with me on Facebook and LinkedIn: website: www.farhatlectures.com Facebook: facebook.com/accountinglectures/ LinkedIn: www.linkedin.com/in/mansour-farhat-cpa-cia-cfe-macc-245342

@abidaheria3400 4 жыл бұрын

Respected sir, I have a guestion. If a parent company was bought a laptop with Rs. 20,000 0n oct-2018 and on nov-2019 this parent company (islamabadl. transfer laptop to ( Karachi )subsidiary. Then how to pass entry. Please guide me

@monikapancholi9743 3 жыл бұрын

(a) Where the parent company does not hold 100 percent equity of the subsidiary company, what portion of the intra-group transactions between the parent entity and the subsidiary entity will need to be eliminated on consolidation ?

@AccountingLectures 3 жыл бұрын

Because you will eventually adjust the difference in NCI