A company 'A' owns 49.9% of company 'S'. Another company 'B' owns 51.1% of S. B sells 'S' to another company for a gain with a higher FMV than book value and recognizes goodwill. Does 'A' have to recognize anything in this transaction? Does A have to increase the carrying value of S on its books, adjust down the ownership percent to maintain 49.9% ownership, or do nothing?

Answer rating: 100% (QA)

In this scenario Company A does not need to recognize anythin... View the full answer