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Problem 10-7 in Advanced Accounting Concepts & Practice by Arnold J. Pahler, 9th edition:

Question: Calculate the unrealized gain on the equipment transfer at the end of 2006 and prepare a matrix analysis to determine the unrealized profit on the current year inventory transfers. Prepare the eliminating entries that will go on the company's consolidated worksheet.

Information:
InterCompany Sales: 50,000
InterCompany Cost of Goods Sold: 30,000
InterCompany Inventory still on hand at EOY: 5,000

On 1/3/06, S company, a 60% non-controlling interest of Park Company, sold office equipment to Park for $27,000. The equipment cost S 44,000 and had an accumulated depreciation of 32,000. Under the S company, the original life of the equipment was 4 years. However, Park reassigned the remaining life to 3 years.

My Answer:
Unrealized profit on inventory transfers of 5,000
Unrealized gain on equipment transfers of 15,000

Eliminating entry for inventory transfer:
I/C Sales 50,000
I/C CGS 30,000
CGS 18,000
Inventory 2,000

Eliminating entry for office equipment:
(at time of acquisition)
Gain 15,000
Equipment 17,000
Accum Dep 32,000

(at end of year)
Accum Dep 5,000
Dep Exp 5,000
NCI in Net Assets 4,000
NCI in Net Inc 4,000



Could someone confirm my results? Thanks.