Question: When a parent company uses the equity method to account
When a parent company uses the equity method to account for investment in a subsidiary, the amortization expense entry recorded during the year is eliminated on a consolidation worksheet as a component of Entry I. What is the necessity of removing this amortization?
Relevant QuestionsWhen a parent company applies the initial value method or the partial equity method to an investment, worksheet adjustment must be made to the parent’s beginning Retained Earnings account (Entry *C) in every period after ...Why has push-down accounting gained popularity for internal reporting purposes?Francisco Inc. acquired 100 percent of the outstanding voting shares of Beltran Company on January 1, 2011. To obtain these shares, Francisco payed $450,000 in cash and issued 104,000 shares of its own $1 par value common ...Foxx Corporation acquired all of Greenburg Company’s outstanding stock on January 1, 2011, for $600,000 cash. Greenburg’s accounting records showed net assets on that date of $470,000, although equipment with a 10-year ...On January 1, 2010, Picante Corporation acquired 100 percent of the outstanding voting stock of Salsa Corporation for $1,765,000 cash. On the acquisition date, Salsa had the following balance sheet:Although at acquisition ...
Post your question