FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume that on December 31, 2019, Parents Investment in Subsidiary account has a balance of $468,000. Also assume that Parents 80% interest in Subsidiary has

Assume that on December 31, 2019, Parents Investment in Subsidiary account has a balance of $468,000. Also assume that Parents 80% interest in Subsidiary has a fair value of $510,000. On January 1, 2020, Parent sells half (remaining 40%) of Subsidiarys shares for $275,000.

How should Parent account for this transaction? Determine Gain/Loss on Sale.

(Show your full calculation step by step.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Tax Audit Guidelines For The State Of California Employment Development Department

Tax Audit Guidelines For The State Of California Employment Development Department

Authors: State Of California, Employment Development Department

1st Edition

B0C1J7KT6R, 979-8390634066

More Books

Students also viewed these Accounting questions

Question

★★★★★
What is the accounting entry when an order is received?

Answered: 1 week ago

Question

★★★★★
2. Select a company and identify the departmentation pattern (or patterns) it uses. Draw an organization chart for the firm. Why do you think the company selected the type of depart- mentation it...

Answered: 1 week ago

Question

★★★★★
C3. One of your classmates hypothesizes that people of color are far less likely to own their own home than white people. Use the following data, which draws from GSS18SSDS-B, to test your classmates...

Answered: 1 week ago

Question

★★★★★
1. How might Calhouns decision to keep production in the United States help solidify her market position in the minds of her target customers? 2. If Red Ants Pants had investors looking for a quick...

Answered: 1 week ago

Question

★★★★★
Assume that on December 31, 2019, Parents Investment in Subsidiary account has a balance of $468,000. Also assume that Parents 80% interest in Subsidiary has a fair value of $510,000. On January 1,...

Answered: 1 week ago

Question

★★★★★
Imperial Jewelers manufactures and sells a gold bracelet for $409.00. The companys accounting system says that the unit product cost for this bracelet is $263.00 as shown below: Direct materials $...

Answered: 1 week ago

Question

★★★★★
You are assigned the role of security manager. The Director of Operations, thinks this is a good opportunity to train all the facilities management staff in key elements of security. Recommending a...

Answered: 1 week ago

Question

★★★★★
Provide an outline of the steps for the change management and configuration management processes of the new server as well as the website that needs to be updated and hosted. This information should...

Answered: 1 week ago

Question

★★★★★
At the end of Year o Jarrett Corp. developed the following forecasts of net income: Forecasted Year Net Income Year 1 $20,856 Year 2 $22,733 Year 3 $24,552 Year 4 $27,252 Year 5 $29,978 Management...

Answered: 1 week ago

Question

★★★★★
write a Business Memo The cafeteria at the college is a private company and is raising the price of the food. As a cafeteria manager, you must tell all your employees in your organization, the...

Answered: 1 week ago

Question

★★★★★
What measure have been undertaken by hospitals to control the costs of pharmaceuticals given the freedom physicians have to prescribe with no accountability for costs? Thoroughly defend your answer.

Answered: 1 week ago

Question

★★★★★
For each of the following situations, indicate whether the direct or the indirect organizational plan would be most appropriate and why. (Objective 2) a. One of your sales representatives applied for...

Answered: 1 week ago

Question

★★★★★
Explain why spell checkers and style checkers do not replace proofreading. (Objective 2 )

Answered: 1 week ago

Question

★★★★★
Using the indirect plan, indicate the most coherent order for these sentences by listing their letters in that order: a. The evening meal is a perfect time for families to talk and share events of...

Answered: 1 week ago

Previous Question Next Question