Accounting Company P holds 900 shares of the 1,000 outstanding common shares of Company S. Today, Company S issues to non-parent investors 500 shares of common stock for $2,000 in cash. Right before the equity carve-out, 

Company S's book value of net assets was $5,000. Assume that the companies were not involved in any intercompany transactions and all the AAP initially recognized was fully amortized. Does Company P retain control after the transaction? Use the information in the previous question. 

What effect will this issuance of common stock by Company S have on noncontrolling interest reported on the consolidated financial statements by Company p?

Answer rating: 100% (QA)

Before right issue Right issue After right issue Company P holdings 900 90... View the full answer