ABC Company acquired 80% of DEF Company prior to 2023. During 2023 the individual companies included in their financial statements the following: ABC DEF Officer’s salaries 4,000,000 2,000,000 Officer’s expenses 3,000,000 1,000,000 Loans to officers 5,000,000 6,000,000 Intercompany sales 5,500,000 2,500,000 What amount should be reported as related party disclosures in the notes to ABC’s 2023 consolidated financial statements?
ABC Company acquired 80% of DEF Company prior to 2023. During 2023 the individual companies included in their financial statements the following: ABC DEF Officer’s salaries 4,000,000 2,000,000 Officer’s expenses 3,000,000 1,000,000 Loans to officers 5,000,000 6,000,000 Intercompany sales 5,500,000 2,500,000 What amount should be reported as related party disclosures in the notes to ABC’s 2023 consolidated financial statements?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 18E
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ABC Company acquired 80% of DEF Company prior to 2023. During 2023 the individual companies included in their financial statements the following:
|
|
ABC |
DEF |
|
Officer’s salaries |
4,000,000 |
2,000,000 |
|
Officer’s expenses |
3,000,000 |
1,000,000 |
|
Loans to officers |
5,000,000 |
6,000,000 |
|
Intercompany sales |
5,500,000 |
2,500,000 |
What amount should be reported as related party disclosures in the notes to ABC’s 2023 consolidated financial statements?
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