Subsidiary Company S had the following stockholders equity on January 1, 2018, prior to issuing 20,000 additional new shares to noncontrolling shareholders At that time, the parent company owned 90,000 Company S shares Assume that the parent acquired the shares at a price equal to their book value ...

We can approach the answer step by step based on the scenario 1 Determine noncontrolling interest NCI prior to the issue of new shares Subsidiary Comp ...

Subsidiary Company S had the following stockholders equity on January 1, 2018, prior to issuing 20,000 additional

Question:

Subsidiary Company S had the following stockholders’ equity on January 1, 2018, prior to issuing 20,000 additional new shares to noncontrolling shareholders:

Common stock ($1 par), 100,000 shares issued and outstanding Paid-in capital in excess of par Retained

At that time, the parent company owned 90,000 Company S shares. Assume that the parent acquired the shares at a price equal to their book value. What is the impact on the parent’s investment account of the sale of 20,000 additional shares by the subsidiary for $45 per share?

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