Question
Assume that Wolf Company owns 100% of ABC Corporation. ABC reports Stockholders Equity of $400,000. The Equity investment was acquired at book value (i.e., no
Assume that Wolf Company owns 100% of ABC Corporation. ABC reports Stockholders Equity of
$400,000. The Equity investment was acquired at book value (i.e., no AAP). ABC sells a 20% interest
to outsiders for $120,000. The entry made by Wolf as a result of the sale of stock by ABC includes:
| APIC credit, $ 16,000 | ||
| APIC credit, $120,000
| ||
| APIC credit, $496,000 | ||
| APIC credit, $416,000 |
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Foundations Of Business
Authors: William M. Pride, Robert J. Hughes, Jack R. Kapoor
7th Edition
0357717945, 978-0357717943
