Sale of shares subsidiary’s to non-affiliate: when subsidiary sells shares to a party outside the economic entity, it increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. The sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company. The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates. Computation of change in the book value of shares held by P as a result of S issuance of additional shares.

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Answer 1

Question

Chapter 9, Problem 9.16E

To determine

Sale of shares subsidiary’s to non-affiliate:when subsidiary sells shares to a party outside the economic entity, it increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. The sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

Computation of change in the book value of shares held by P as a result of S issuance of additional shares.

To determine

Sale of shares subsidiary’s to non-affiliate: when subsidiary sells shares to a party outside the economic entity, it increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. The sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

The entry to be recorded by P advertising to recognize the change in book value of the shares held.

To determine

a. Consolidation entries

Sale of shares subsidiary’s to non-affiliate: when subsidiary sells shares to a party outside the economic entity, it increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. The sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

The preparation of consolidation entries immediately following the issuance of additional shares

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What was the gain or loss on the disposal?

Answer 2

Question

Chapter 9, Problem 9.16E

To determine

Sale of shares subsidiary’s to non-affiliate:when subsidiary sells shares to a party outside the economic entity, it increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. The sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

Computation of change in the book value of shares held by P as a result of S issuance of additional shares.

To determine

Sale of shares subsidiary’s to non-affiliate: when subsidiary sells shares to a party outside the economic entity, it increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. The sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

The entry to be recorded by P advertising to recognize the change in book value of the shares held.

To determine

a. Consolidation entries

Sale of shares subsidiary’s to non-affiliate: when subsidiary sells shares to a party outside the economic entity, it increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. The sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

The preparation of consolidation entries immediately following the issuance of additional shares

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Answer 3

Question

Chapter 9, Problem 9.16E

To determine

Sale of shares subsidiary’s to non-affiliate:when subsidiary sells shares to a party outside the economic entity, it increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. The sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

Computation of change in the book value of shares held by P as a result of S issuance of additional shares.

To determine

Sale of shares subsidiary’s to non-affiliate: when subsidiary sells shares to a party outside the economic entity, it increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. The sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

The entry to be recorded by P advertising to recognize the change in book value of the shares held.

To determine

a. Consolidation entries

Sale of shares subsidiary’s to non-affiliate: when subsidiary sells shares to a party outside the economic entity, it increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. The sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

The preparation of consolidation entries immediately following the issuance of additional shares

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See solution

Answer 4

Question

Chapter 9, Problem 9.16E

To determine

Sale of shares subsidiary’s to non-affiliate:when subsidiary sells shares to a party outside the economic entity, it increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. The sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

Computation of change in the book value of shares held by P as a result of S issuance of additional shares.

To determine

Sale of shares subsidiary’s to non-affiliate: when subsidiary sells shares to a party outside the economic entity, it increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. The sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

The entry to be recorded by P advertising to recognize the change in book value of the shares held.

To determine

a. Consolidation entries

Sale of shares subsidiary’s to non-affiliate: when subsidiary sells shares to a party outside the economic entity, it increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. The sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

The preparation of consolidation entries immediately following the issuance of additional shares

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Answer 5

Chapter 9, Problem 9.16E

To determine

Sale of shares subsidiary’s to non-affiliate:when subsidiary sells shares to a party outside the economic entity, it increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. The sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

Computation of change in the book value of shares held by P as a result of S issuance of additional shares.

To determine

Sale of shares subsidiary’s to non-affiliate: when subsidiary sells shares to a party outside the economic entity, it increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. The sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

The entry to be recorded by P advertising to recognize the change in book value of the shares held.

To determine

a. Consolidation entries

Sale of shares subsidiary’s to non-affiliate: when subsidiary sells shares to a party outside the economic entity, it increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. The sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

The preparation of consolidation entries immediately following the issuance of additional shares

Answer 6

Chapter 9, Problem 9.16E

To determine

Sale of shares subsidiary’s to non-affiliate:when subsidiary sells shares to a party outside the economic entity, it increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. The sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

Computation of change in the book value of shares held by P as a result of S issuance of additional shares.

Answer 7

Chapter 9, Problem 9.16E

To determine

Sale of shares subsidiary’s to non-affiliate:when subsidiary sells shares to a party outside the economic entity, it increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. The sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

Computation of change in the book value of shares held by P as a result of S issuance of additional shares.

Answer 8

To determine

Sale of shares subsidiary’s to non-affiliate: when subsidiary sells shares to a party outside the economic entity, it increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. The sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

The entry to be recorded by P advertising to recognize the change in book value of the shares held.

Answer 9

To determine

Sale of shares subsidiary’s to non-affiliate: when subsidiary sells shares to a party outside the economic entity, it increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. The sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

The entry to be recorded by P advertising to recognize the change in book value of the shares held.

Answer 10

To determine

a. Consolidation entries

Sale of shares subsidiary’s to non-affiliate: when subsidiary sells shares to a party outside the economic entity, it increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. The sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

The preparation of consolidation entries immediately following the issuance of additional shares

Answer 11

To determine

a. Consolidation entries

Sale of shares subsidiary’s to non-affiliate: when subsidiary sells shares to a party outside the economic entity, it increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. The sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

The preparation of consolidation entries immediately following the issuance of additional shares

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 9 - Prob. 9.1Q Ch. 9 - Prob. 9.2Q Ch. 9 - Prob. 9.3Q Ch. 9 - Prob. 9.4Q Ch. 9 - Prob. 9.5Q Ch. 9 - Prob. 9.6Q Ch. 9 - Prob. 9.7Q Ch. 9 - Prob. 9.8Q Ch. 9 - Prob. 9.9Q Ch. 9 - Prob. 9.10Q

Solution Summary: The author explains that sale of shares subsidiary's to non-affiliate increases total stockholders' equity of the consolidated entity and reduces the percentage ownership held by the parent company.

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Chapter 9 Solutions