Question: What is the primary accounting difference between accounting for when the subsidiary is dissolved and when the subsidiary retains its incorporation? If the subsidiary is

 What is the primary accounting difference between accounting for when the

What is the primary accounting difference between accounting for when the subsidiary is dissolved and when the subsidiary retains its incorporation? If the subsidiary is dissolved, assets and liabilities are consolidated at their book values of the subsidiary retains its incorporation, the consolidation is not formally recorded in the accounting records of the acquiring company, If the subsidiary is dissolved, it will not be operated as a separate division, If the subsidiary retain its incorporation, there will be no goodwill associated with the acquisition

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!