Dave Company sold inventory to Raine Company, its 90%-owned subsidiary. The sale is on account and remain outstanding as of the reporting period. How should the intercompany receivable and payable be presented in the consolidated statements? a. Dave Company should present only 90% of the receivable in the consolidated statement of financial position. b. The receivable in the book of Dave and payable in the book of Raine will be forwarded in full in the consolidated statement of financial position. c. The receivable in the book of Dave will be forwarded in full and payable in the book of Raine will be prorated only to 90% in the consolidated statement of financial position. d. Both receivable and payable will be eliminated in full.
Dave Company sold inventory to Raine Company, its 90%-owned
subsidiary. The sale is on account and remain outstanding as of the
reporting period. How should the intercompany receivable and payable be
presented in the consolidated statements?
a. Dave Company should present only 90% of the receivable in the
consolidated
b. The receivable in the book of Dave and payable in the book of Raine
will be forwarded in full in the consolidated statement of financial position.
c. The receivable in the book of Dave will be forwarded in full and payable
in the book of Raine will be prorated only to 90% in the consolidated
statement of financial position.
d. Both receivable and payable will be eliminated in full.
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