contestada

on october 6, 2021, ronan corp. sold land to bane co., its wholly owned subsidiary. the land cost $72,400 and was sold to bane for $96,000. for consolidated financial statement reporting purposes, when must the gain on the sale of the land be recognized?

Respuesta :

When Bane Co. sells its land to a third party is the prerequisite for the gain just on sale of the land to be recognized in consolidated financial statement financial reporting.

Define the term consolidated financial statement?

The financial statements for the entire group are consolidated financial statements.

  • They stand for the entire parent firm as well as every subsidiary that the parent company controls.
  • They comprise the income statement, statement of cash flow and balance sheet—the three essential financial statements.
  • A parent company's financial statement and the financial statements of its branches are combined to form a consolidated financial statement.
  • Reviewing the financial standing of the collection of enterprises held by one company requires consideration of this statement.

Thus, the prerequisite for the gain mostly on sale of the land to be recognized for consolidated company's financial reporting purposes is that whenever Bane Co. sells its land to the a third party.

To know more about the consolidated financial statement, here

https://brainly.com/question/28986130

#SPJ4

Otras preguntas