Company A purchased 35,000 voting shares out of Company B's 50,000 outstanding voting shares for $350,000...
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Company A purchased 35,000 voting shares out of Company B's 50,000 outstanding voting shares for $350,000 on January 1, 2020. On the date of acquisition, B's common shares and retained earnings were valued at $120,000 and $180,000, respectively. The book values of the identifiable new assets and liabilities are the same as their fair values. On January 2, 2020, Company B issued 10,000 of new shares to investors for $175,600. Company A buys none of these shares. Company A uses the equity method to account for its investment in Company B. What is the percentage reduction in Company A's ownership of Company B's shares? 019% 015% 023% 013% 017% Company A purchased 35,000 voting shares out of Company B's 50,000 outstanding voting shares for $350,000 on January 1, 2020. On the date of acquisition, B's common shares and retained earnings were valued at $120,000 and $180,000, respectively. The book values of the identifiable new assets and liabilities are the same as their fair values. On January 2, 2020, Company B issued 10,000 of new shares to investors for $175,600. Company A buys none of these shares. Company A uses the equity method to account for its investment in Company B. What is the percentage reduction in Company A's ownership of Company B's shares? 019% 015% 023% 013% 017%
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i Total outstanding shares50000 ii Shares owned by Company ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Posted Date:
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