Assume that a subsidiary has 10,000 shares of stock outstanding, of which 8,000 shares are owned by
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Assume that a subsidiary has 10,000 shares of stock outstanding, of which 8,000 shares are owned by the parent. What equity method adjustment will be necessary on the parent books if the subsidiary sells 2,000 additional shares of its own stock to outside interests at book value? At an amount in excess of book value?
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Assuming that no gain or loss is recognized no adjustment of the parents investment account is neces...View the full answer
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Related Book For
Advanced Accounting
ISBN: 9780132568968
11th Edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
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