Question
Harvey Company increased its ownership in Washington Company from 70% to 90% by the purchase of additional shares of the Washington's outstanding stock from noncontrolling
Harvey Company increased its ownership in Washington Company from 70% to 90% by the purchase of additional shares of the Washington's outstanding stock from noncontrolling shareholders for a purchase price of $300,000. Immediately prior to the transaction, Harvey's consolidated balance sheet included a noncontrolling interest balance of $1,000,000.
17.The journal entry by Harvey to record the purchase includes a net:
a.Equity investment debit, $333,333
b.Equity investment debit, $300,000
c.Equity investment debit, $33,333
d.Equity investment debit, $200,000
The answer is A how do you calculate this ????
18.The journal entry by Harvey to record the purchase includes:
a.APIC credit, $300,000
b.APIC credit, $33,333
c.APIC credit, $333,333
d.Cash credit, $333,333
The answer is B How do you get this
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