The working paper eliminating entry recorded by Acquired Company on January 1, 2017, the date of acquisition of itssubsidiary follows:Common stock-Acquiring CompanyAPIC-Acquiring CompanyRetained Earnings-Acquiring CompanyInventoryPlant Assets (net)200,000300,000250,00075,000105,00070,000200,000PatentGoodwill920,000Investment in Acquiring CompanyNon-controlling interest in Acquired Company280,000Of the goodwill recorded, 30,000 belong to the non-controlling interest.Determine the percentage of outstanding voting shares of the subsidiary acquired by the parent.

There are elimination entries at the time of consolidation.

The working paper eliminating entry recorded by Acquired Company on January 1, 2017, the date of acquisition of its subsidiary follows: Common stock-Acquiring Company APIC-Acquiring Company Retained Earnings-Acquiring Company 200,000 300,000 250,000 75,000 105,000 70,000 200,000 Inventory Plant Assets (net) Patent Goodwill Investment in Acquiring Company Non-controlling interest in Acquired Company 920,000 280,000 Of the goodwill recorded, 30,000 belong to the non-controlling interest. Determine the percentage of outstanding voting shares of the subsidiary acquired by the parent.

The working paper eliminating entry recorded by Acquired Company on January 1, 2017, the date of acquisition of its subsidiary follows: Common stock-Acquiring Company APIC-Acquiring Company Retained Earnings-Acquiring Company 200,000 300,000 250,000 75,000 105,000 70,000 200,000 Inventory Plant Assets (net) Patent Goodwill Investment in Acquiring Company Non-controlling interest in Acquired Company 920,000 280,000 Of the goodwill recorded, 30,000 belong to the non-controlling interest. Determine the percentage of outstanding voting shares of the subsidiary acquired by the parent.

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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Determine the percentage of outstanding voting shares of the subsidiary acquired by the parent.
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