Question: Suppose Company A buys 100 of the common shares of
Suppose Company A buys 100% of the common shares of Company B for cash. How does Company B record the receipt of this cash on its books?
Answer to relevant Questions“A consolidated income statement will show more income than a parent-company-only statement when both the parent and subsidiary have positive net income.” Do you agree? Explain. Some years ago, Japan’s finance ministry issued a directive requiring the 600 largest Japanese companies to produce consolidated financial statements. The previous practice had been to use parent-company-only statements. ...Why might a company prefer to own a 19.9% interest in an affiliate instead of a 20.1% interest?The Lapinski Company has a portfolio of trading securities consisting of common and preferred stocks. The portfolio cost $160 million on January 1. The market values of the portfolio were as follows ($ in millions): March ...The VanDuzer Company has the following footnote to its financial statements: Short-Term Investments The company holds the following short-term investments at December 31 (in thousands):1. Compute the amount that VanDuzer ...
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