4. If a parent company acquires for cash all the common stock owned by minority stockholders of...

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4. If a parent company acquires for cash all the common stock owned by minority stockholders of a partially owned subsidiary, the excess of the cash paid over the minority interest in net assets of the subsidiary generally is recognized as:

a. An expense in a parent company journal entry.

b. Goodwill in a working paper elimination.

c. An increase in the current fair values of the subsidiary’s identifiable net assets in a working paper elimination.

d. A reduction of an additional paid-in capital ledger account balance in a parent company journal entry.

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