Ainun Corporation owns an 80 percent interest in Bahrun Corporation. At December 31, 2016, its Investment in
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Question:
Ainun Corporation owns an 80 percent interest in Bahrun Corporation. At December 31, 2016, its Investment in Bahrun account is $3,500,000 and consists of $3,000,000 in equity and the remaining as goodwill. On July 1, 2017, Ainun decides to sell 70 percent of Bahrun’s interest for $3,000,000, resulting in a deconsolidation. For 2017, Bahrun’s net income and dividend are $320,000 and $30,000, respectively.
REQUIRED:
Calculate the gain or loss resulting from the deconsolidation.
Related Book For
Advanced Accounting
ISBN: 9780132568968
11th Edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
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