ADV.FIN.ACCT.LL W/CONNECT+PROCTORIO PLUS
ADV.FIN.ACCT.LL W/CONNECT+PROCTORIO PLUS
12th Edition
ISBN: 9781266380570
Author: Christensen
Publisher: MCG
Question
Book Icon
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

Blurred answer
Students have asked these similar questions
Department L had 600units 60% completed in process at the beginning of June, 6,000 units completed during June, and 700 units 30% completed at the end of June. Using the first-in, first-out method of inventory costing, what was the number of equivalent units of production for conversion costs for the period?
No ai tool . brightster , inc.
Need help
Knowledge Booster
Background pattern image
Recommended textbooks for you
Text book image
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning