Assume that the parent reduces its percentage ownership in the subsidiary from 80% to 70% by selling
Question:
Assume that the parent reduces its percentage ownership in the subsidiary from 80% to 70% by selling some shares to outsiders for more than the carrying amount of the shares. How will this transaction affect the return on equity and the debt-to-equity ratios on the consolidated financial statements?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 33% (3 reviews)
Since the parent retains control of the subsidiary the gain on sale is reported in contr...View the full answer
Answered By
Ashington Waweru
I am a lecturer, research writer and also a qualified financial analyst and accountant. I am qualified and articulate in many disciplines including English, Accounting, Finance, Quantitative spreadsheet analysis, Economics, and Statistics. I am an expert with sixteen years of experience in online industry-related work. I have a master's in business administration and a bachelor’s degree in education, accounting, and economics options.
I am a writer and proofreading expert with sixteen years of experience in online writing, proofreading, and text editing. I have vast knowledge and experience in writing techniques and styles such as APA, ASA, MLA, Chicago, Turabian, IEEE, and many others.
I am also an online blogger and research writer with sixteen years of writing and proofreading articles and reports. I have written many scripts and articles for blogs, and I also specialize in search engine
I have sixteen years of experience in Excel data entry, Excel data analysis, R-studio quantitative analysis, SPSS quantitative analysis, research writing, and proofreading articles and reports. I will deliver the highest quality online and offline Excel, R, SPSS, and other spreadsheet solutions within your operational deadlines. I have also compiled many original Excel quantitative and text spreadsheets which solve client’s problems in my research writing career.
I have extensive enterprise resource planning accounting, financial modeling, financial reporting, and company analysis: customer relationship management, enterprise resource planning, financial accounting projects, and corporate finance.
I am articulate in psychology, engineering, nursing, counseling, project management, accounting, finance, quantitative spreadsheet analysis, statistical and economic analysis, among many other industry fields and academic disciplines. I work to solve problems and provide accurate and credible solutions and research reports in all industries in the global economy.
I have taught and conducted masters and Ph.D. thesis research for specialists in Quantitative finance, Financial Accounting, Actuarial science, Macroeconomics, Microeconomics, Risk Management, Managerial Economics, Engineering Economics, Financial economics, Taxation and many other disciplines including water engineering, psychology, e-commerce, mechanical engineering, leadership and many others.
I have developed many courses on online websites like Teachable and Thinkific. I also developed an accounting reporting automation software project for Utafiti sacco located at ILRI Uthiru Kenya when I was working there in year 2001.
I am a mature, self-motivated worker who delivers high-quality, on-time reports which solve client’s problems accurately.
I have written many academic and professional industry research papers and tutored many clients from college to university undergraduate, master's and Ph.D. students, and corporate professionals. I anticipate your hiring me.
I know I will deliver the highest quality work you will find anywhere to award me your project work. Please note that I am looking for a long-term work relationship with you. I look forward to you delivering the best service to you.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Modern Advanced Accounting In Canada
ISBN: 9781260881295
10th Edition
Authors: Hilton Murray, Herauf Darrell
Question Posted:
Students also viewed these Business questions
-
1. An enterprise that holds a variable interest in a variable interest entity (VIE) is required to consolidate the assets, liabilities, revenues, expenses, and noncontrolling interest of that entity...
-
In Integrative Case 10.1, we projected financial statements for Starbucks for Years +1 through +5. In this portion of the Starbucks Integrative Case, we use the projected financial statements from...
-
Coca-Cola Company is a global soft-drink beverage company (ticker symbol + KO) that is a primary and direct competitor with PepsiCo. The data in Chapter 12s Exhibits 12.1312.15 include the actual...
-
Use the ideas of Richardson's extrapolation and Romberg's method to evaluate the first derivative of f = ex at x = 0. To construct the first column of the Romberg's table, use the formula (exth -...
-
Bombs Away Video Games Corporation has forecasted the following monthly sales: Bombs Away Video Games sells the popular Strafe and Capture video game. It sells for $5 per unit and costs $2 per unit...
-
3. Mashaw reports the following contribution margin income statement: Contribution Margin Income Statement For the Year Ended December 31 Sales (10,000 units at $250 each) Variable Costs (10,000...
-
Sarah Lou Bakery, Inc., reported a prior-period adjustment in 2008. An accounting error caused net income of prior years to be overstated by \(\$ 5,000\). Retained earnings at December 31, 2007, as...
-
Nathans Athletic Apparel has 2,000 shares of 5%, $100 par value preferred stock the company issued at the beginning of 2014. All remaining shares are common stock. The company was not able to pay...
-
According to Drury ( 2 0 2 1 ) , allowing managers and employees to participate in the setting of performance target has several advantages. Explain three advantages.Discuss how the difficulty in...
-
Access the 2020 consolidated financial statements in the annual report for Barrick Gold Corporation by going to the investor relations section of the companys website. Answer the questions below. For...
-
Assume that the parent purchases 100% of the subsidiarys preferred shares for cash of $500, which is equal to the carrying amount of the preferred shares on the subsidiarys balance sheet. How will...
-
As used in line 24 of the passage, naive most nearly means: A. Aware. B. Inexperienced. C. Difficult. D. Incapable.
-
what ways does cultural capital operate as a form of symbolic power that confers social status, distinction, and advantage in fields such as education, the arts, and the media ?
-
At the beginning of the year, Albertson Incorporated reports inventory of $6,900. During the year, the company purchases additional inventory for $21,900. At the end of the year, the cost of...
-
During the 20X8 tax year, Kricia completed her 2nd year as an undergraduate at Faber University. During the year, Kricia incurred the following expenses. Tuition: $40,000 Room and Board: 10,000...
-
How have different countries approached industrial policy? How does this historical discussion of industrial policy compare to the textbook's discussion of investment? Does the neoclassical idea of...
-
Explain why (2)( + 2) = 0 has no solutions.
-
A shareholder may have a primary relationship as well as secondary relationships with the corporation. The difference between the (two relationships relates to the tax treatment of income flows...
-
An access route is being constructed across a field (Figure Q8). Apart from a relatively firm strip of ground alongside the field's longer side AB, the ground is generally marshy. The route can...
-
The balance sheets of E Ltd. and J Ltd. on December 30, Year 6, were as follows: On December 31, Year 6, E Ltd. issued 350 shares, with a fair value of $40 each, for 70% of the outstanding shares of...
-
On December 31, Year 1, P Company purchased 80% of the outstanding shares of S Company for $6,960 cash. The statements of financial position of the two companies immediately after the acquisition...
-
On January 1, Year 5, Black Corp. purchased 90% of the common shares of Whyte Inc. On this date, the following differences were observed with regard to specific net assets of Whyte: Fair value...
-
The aim of the task is to conduct the performance evaluation of the network. Firstly, it is important to understand the various Network key performance indicators (KPIs). These are benchmarks by...
-
How am I supposed to create the following network and make it so that VM2 does not have internet connection while VM3 does? Internet Functions VM1 Router, NAT VM2 Router VM3 End device VM1 VM2 VM3...
-
How important is diversity in technology fields? Why is it important
Study smarter with the SolutionInn App