A company 'A' owns 49.9% of company 'S'. Another company 'B' owns 51.1% of S. B sells
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A company 'A' owns 49.9% of company 'S'. Another company 'B' owns 51.1% of S. B sells 'S' to another company for a gain with a higher FMV than book value and recognizes goodwill. Does 'A' have to recognize anything in this transaction? Does A have to increase the carrying value of S on its books, adjust down the ownership percent to maintain 49.9% ownership, or do nothing?
Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
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