Assume that on December 31, 2020, parent’s Investment in Sub. Account has a balance of SR 400,000. Also, assume that parent’s 80% interest in Sub has a fair value of SR500, 000. On January 1, 2021, Parent sells half (remaining 40%) of Sub shares for SR 240, 000.

Required: 

Compute gains on that sale transaction.

Answer rating: 100% (QA)

To compute the gain on the sale of the Sub shares we need to determine the adjusted basi... View the full answer