1.When a parent company that records its investment using the cost method during a fiscal year sells...
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Question:
1.When a parent company that records its investment using the cost method during a fiscal year sells a portion of its investment, explain the correct accounting for any differences between selling price and recorded values.
2.When a subsidiary issues additional shares of stock to noncontrolling stockholders and such issuance results in an increase in the carrying value of the parent's share of the subsidiary's equity, how should the increase be reflected in the financial statements?
What if it results in a decrease?
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