Bence NYRT was a 70 percent subsidiary of Nora NYRT. On January 3, 2014, the balance...

 

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Bence NYRT was a 70 percent subsidiary of Nora NYRT. On January 3, 2014, the balance of investment account in Bence NYRT was $350,000 while the total equity of Bence NYRT was $450,000. On January 4, 2014, Bence NYRT purchased 1000 of its own outstanding stocks from the noncontrolling interest for $60 per share. Before the treasury stock transac- tion, Bence NYRT had 9,000 outstanding stocks. REQUIRED 1. Calculate the ownership percentage of Nora NYRT in Bence NYRT after the treasury stock transaction. 2. Prepare a journal entry to adjust investment in Bence NYRT account. 3. Calculate the amount of investment in Bence NYRT after the transaction. Bence NYRT was a 70 percent subsidiary of Nora NYRT. On January 3, 2014, the balance of investment account in Bence NYRT was $350,000 while the total equity of Bence NYRT was $450,000. On January 4, 2014, Bence NYRT purchased 1000 of its own outstanding stocks from the noncontrolling interest for $60 per share. Before the treasury stock transac- tion, Bence NYRT had 9,000 outstanding stocks. REQUIRED 1. Calculate the ownership percentage of Nora NYRT in Bence NYRT after the treasury stock transaction. 2. Prepare a journal entry to adjust investment in Bence NYRT account. 3. Calculate the amount of investment in Bence NYRT after the transaction.

Answer rating: 100% (QA)

In the Books of Bence NYRT as on 31122014 Journal Entries i Equity Stock Capital Ac Dr 100050 50000 ... View the full answer