Subsidiary Company S had the following stockholders’ equity on December 31, 2017, prior to distributing a 10% stock dividend: The fair value of the shares distributed is $50 each. What is the effect of this dividend on the subsidiary equity, the investment account, and the December 31, 2017, elimination procedures? Assume the parent uses the simple equity method to account for its investment in the subsidiary.
Subsidiary Company S had the following
The fair value of the shares distributed is $50 each. What is the effect of this dividend on the subsidiary equity, the investment account, and the December 31, 2017, elimination procedures? Assume the parent uses the simple equity method to account for its investment in the subsidiary.
Consolidated Financial Statement
The consolidated financial statement is the statement prepared by the holding company after taking into account all of its subsidiaries, joint ventures, and associates' assets and liabilities. Consolidated financial statements are intended to portray the operating activities and economic position of a parent and all of its affiliates as if they're a single economic entity. Particularly for the benefit of the family's owners and creditors. In other words, it is a consolidated view of all assets and liabilities, including profit and loss items from the company's holdings and subsidiaries.
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