Sale of subsidiary common shares: When a parent sells subsidiary shares, a gain or loss normally occurs and is recorded on the seller’s books, which needed to be recognized in consolidated net income. Under ASE 810, changes in a parent’s ownership interest in a subsidiary while the parent retains control require an adjustment to the amount assigned to the non-controlling interest to reflect its change in ownership in the subsidiary. Any difference in fair value of the controlling interest results in an adjustment to the stockholders’ equity attributable to the controlling interest, through an adjustment to additional paid-in capital. The reporting of sale of stock of a subsidiary by X Corporation in its consolidated financial statements prior to 2008, and the sale reported under current standards.

Question

Want to see the full answer?

Answer 1

Question

Chapter 9, Problem 9.2C

a

To determine

Sale of subsidiary common shares: When a parent sells subsidiary shares, a gain or loss normally occurs and is recorded on the seller’s books, which needed to be recognized in consolidated net income. Under ASE 810, changes in a parent’s ownership interest in a subsidiary while the parent retains control require an adjustment to the amount assigned to the non-controlling interest to reflect its change in ownership in the subsidiary. Any difference in fair value of the controlling interest results in an adjustment to the stockholders’ equity attributable to the controlling interest, through an adjustment to additional paid-in capital.

The reporting of sale of stock of a subsidiary by X Corporation in its consolidated financial statements prior to 2008, and the sale reported under current standards.

b

To determine

Sale of subsidiary common shares: When a parent sells subsidiary shares, a gain or loss normally occurs and is recorded on the seller’s books, which needed to be recognized in consolidated net income. Under ASE 810, changes in a parent’s ownership interest in a subsidiary while the parent retains control require an adjustment to the amount assigned to the non-controlling interest to reflect its change in ownership in the subsidiary. Any difference in fair value of the controlling interest results in an adjustment to the stockholders' equity attributable to the controlling interest, through an adjustment to additional paid-in capital.

The treatment of subsidiary preferred stock by OP Corporation.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Chapter 15 Homework 13 Saved Help Save & Exit Submit Part 1 of 2 0.83 points eBook Ask Required information Use the following information to answer questions. (Algo) [The following information applies to the questions displayed below.] Information on Kwon Manufacturing's activities for its first month of operations follows: a. Purchased $100,800 of raw materials on credit. b. Materials requisitions show the following materials used for the month. Job 201 Job 202 Total direct materials Indirect materials Total materials used $ 49,000 24,400 73,400 9,420 $ 82,820 c. Time tickets show the following labor used for the month. Print References Job 201 $ 40,000 Job 202 13,400 Total direct labor 53,400 25,000 $ 78,400 Indirect labor Total labor used d. Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate of 80% of direct materials cost. e. Transferred Job 201 to Finished Goods Inventory. f. Sold Job 201 for $166,160 on credit. g. Incurred the following actual other…

quesrion 2

Anti-Pandemic Pharma Co. Ltd. reports the following information in its income statement: Sales = $5,250,000; Costs = $2, 173,000; Other expenses = $187,400; Depreciation expense = $79,000; Interest expense= $53,555; Taxes $76,000; Dividends $69,000. $136,700 worth of new shares were also issued during the year and long-term debt worth $65,300 was redeemed. a) Compute the cash flow from assets b) Compute the net change in working capital (325 marks)