Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1. Parent owns 70 percent shares in Subsidiary. On August 31, 2019, Parent sold half of its interest in S. On the date, the book
1. Parent owns 70 percent shares in Subsidiary. On August 31, 2019, Parent sold half of its interest in S. On the date, the book value of Ps 70% share of S is $80,000 and the fair value of S as a whole is $235,000. How much is the gain on the sale of half of Ps interest in S?
a. 77,500
b. 0
c. 84,500
d. 42,500
2. Also, I think I did the one below correct could you just say whether I did or not? Thanks in advance!!!
When a parent owns less than 100% of a subsidiary, the noncontrolling interest shareholders are allocated their ownership percentage of income or net assets in all of the following consolidating entries except for: The account receivable and payable elimination entry The basic investment account consolidation entry The amortized excess value reclassification entry The excess value (differential) reclassification entry
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started