1. The following intercompany transactions occurred during the year:

1. The following intercompany transactions occurred during the year:.

I’m working on a Accounting question and need guidance to help me study.

  • The following intercompany transactions occurred during the year:
  • Give two examples of Arm’s Length Transactions and Three Examples of Non Arm’s Length Transactions. (1 Mark)
  • Find the indirect exchange rates on the two dates and show the impact of changes in exchange rates on Imports and Exports. (2 Marks)
  • Parent loaned $12500 to Sub. To keep things simple, assume that there is no interest revenue or interest expense associated with this loan.
  • Parent made a sale to Sub for $13000 cash. The inventory had originally cost Parent $12220. Sub then sold that same inventory to an outsider for $14000.
  • Parent made a sale to Sub for $15000 cash. The inventory had originally cost Parent $11280. Sub has not yet sold that same inventory to an outsider. (Don’t forget equity method entry!)

Based on our “conceptual discussion,” what consolidation worksheet entries would you make?(2 Marks)

January, 2010

January 2011

Direct Exchange Rate (SAR/$)

SAR 3.75

SAR 3.50

1. The following intercompany transactions occurred during the year:

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