I wonder if Becker makes a distinction between downstream and upstream sales. Downstream when Parent sales to Sub and Downstream when Sub sells to Parent. Does Becker material mention and takes into account this or not? Thanks a lot!

thanks terpfan101.

Hmm. My question now is

For example if Parent sold Sub land for a gain of 25,000 in 2007. Elimination JE would be @ Dec 2007

Original entry

cash 125,000

    land 100,000

    Gain 25,000

Elimiantion entry

Gain 25,000

    land 25,000

The elimination JE FOR 2008. Parent still holds land so gain has to be eliminated

Investment in Sub 25,000

   Land 25,000

The entry if Sub sold to Parent would have been

RE   25,000

    Land 25,000

Sorry for the long explanation. Does Becker makes this type of distinction? or should I just forget about the differences of Parent selling to Sub and Sub to Parent. Thanks a bunch!

Thanks a lot, terpfan. If you don't remember maybe Becker doesn't really go into this type of details...