Assume that a subsidiary has 10,000 shares of stock outstanding, of which 8,000 shares are owned by

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Assume that a subsidiary has 10,000 shares of stock outstanding, of which 8,000 shares are owned by the parent company. What equity method adjustment will be necessaiy on the paient-company books if the subsidiary sells 2,000 additional shares of its own stock to outside intciests at book value? At an amount in excess of book value?

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Advanced Accounting

ISBN: 9780131851221

9th Edition

Authors: Floyd A. Beams, Robin P. Clement, Suzanne H. Lowensohn, Joseph H. Anthony

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