Quincy Corp. owns 85% of Thomas Co. Quincy uses the equity method to account for...
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Accounting
Quincy Corp. owns 85% of Thomas Co. Quincy uses the equity method to account for its investments. During 2018, Quincy sells inventory to Thomas for $500,000. The inventory originally cost Quincy $420,000. At 12/31/2018, 25% of the goods were still in Thomas' inventory.
Required:
a) Prepare the Consolidation Entry TI and Consolidation Entry G for the consolidation worksheet.
b) If an entry or entries need to be made in the 2019 consolidation because of this transaction, record the journal entry.
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