If the fair value of a subsidiarys land was $100,000 and its book value was $90,000 when

Question:

If the fair value of a subsidiary’s land was $100,000 and its book value was $90,000 when the parent acquired its 100 percent interest for cash, at what amount would the land be included in the consolidated immediately after the acquisition? Would your answer be different if the parent had acquired an 80 percent interest?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...