Question
I am confused about how to determine the Investment Account or the Retained Earnings for the Father Company, Delta, in this question. I am stuck
I am confused about how to determine the Investment Account or the Retained Earnings for the Father Company, Delta, in this question. I am stuck on the 5th Journal Entry with a debit to Common Stock and Retained Earnings and a credit to Investment in Delta and NCI Interest in Delta. The common stock number is given in the Balance Sheet, but the Retained Earnings amount is not for Delta. The retained earnings for Omega is given. I assume I need to subtract Amortization from Retained Earnings or Investment, but I am not sure. How do I calculate the Retained Earnings or the Investment Account for Delta???? I hope this question is attached to this document, otherwise this is stupid >(. There is no way I can explain the question involved.......
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