Question: When a fair valued asset is sold by a subsidiary to
When a fair-valued asset is sold by a subsidiary to its parent, how does the amount of the fair-value increment affect the unrealized profit elimination?
Answer to relevant QuestionsExplain briefly how the process of consolidation differs when the equity method is used by the parent for recording the investment account as compared to the cost method.When a fair- valued asset is sold to outsiders, what is the disposition of the fair-value increment when the statements are consolidated in the year of the sale? What is the disposition of the increment in years following ...On January 1, 20X3, Sub Ltd., 80% owned by Par Ltd., sold a building to Par Ltd. for $ 1,800,000. The building cost Sub $ 800,000 and was 70% depreciated (at 5% per year). Par will depreciate the building over the six ...At the 20X5 annual meeting for Jasmine’s shareholders, Curry nominated seven directors for Jasmine’s 12- person board of directors. After some negotiation, five of Curry’s nominees were accepted onto the board. During ...On April 1, 20X5, Marsh Ltd. purchased 25% of the outstanding common shares of King Corp. for $ 6,000,000. The carrying value of King’s net assets was $ 16,000,000, an amount that also approximated their fair value. For ...
Post your question