Trinity Inc. owns 100 percent of Lindell Company's 30,000 voting shares. Trinity sells 12,000 of its...

 

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Trinity Inc. owns 100 percent of Lindell Company's 30,000 voting shares. Trinity sells 12,000 of its Lindell shares on the open market for $60,000 on September 1. On September 1, Trinity's internal accounting records shows a $160,000 equity method balance for its investment in Lindell. How should Trinity record the difference between the sale proceeds and the carrying amount of the shares sold? Trinity Inc. owns 100 percent of Lindell Company's 30,000 voting shares. Trinity sells 12,000 of its Lindell shares on the open market for $60,000 on September 1. On September 1, Trinity's internal accounting records shows a $160,000 equity method balance for its investment in Lindell. How should Trinity record the difference between the sale proceeds and the carrying amount of the shares sold?

Answer rating: 100% (QA)

Since Trinity owns 100 percent of Lindell Companys shares its equity method balance reflects the ent... View the full answer