The working paper eliminating entry recorded by Jay Park Co. on January 1, 20120, the date of acquisition of its subsidiary follows:Debit: Common stock-Acquiring Company$20,000APIC-Acquiring Company$30,000Retained Earnings-Acquiring Company$25,000Inventory$7,500Plant Assets (net)$10,500Patent$7,000Goodwill$20,000Credit: Investment in Acquiring Company$92,000Non-controlling interest in Acquired Company $28,000 Of the goodwill recorded, $3,000 belong to the non-controlling interest.What is the percentage of outstanding voting shares of the subsidiary acquired by the parent?

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The working paper eliminating entry recorded by Jay Park Co. on January 1, 20120, the date of acquisition of its subsidiary follows:

Debit:
Common stock-Acquiring Company	$20,000
APIC-Acquiring Company	$30,000
Retained Earnings-Acquiring Company	$25,000
Inventory	$7,500
Plant Assets (net)	$10,500
Patent	$7,000
Goodwill	$20,000
Credit:
Investment in Acquiring Company	$92,000
Non-controlling interest in Acquired Company	$28,000

Of the goodwill recorded, $3,000 belong to the non-controlling interest.

What is the percentage of outstanding voting shares of the subsidiary acquired by the parent?

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