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On January 1, 20x8, Parent Company purchased 90% of the common stock of Subsidiary Company for $360,000. On this date, subsidiary had common stock, other
On January 1, 20x8, Parent Company purchased 90% of the common stock of Subsidiary Company for $360,000. On this date, subsidiary had common stock, other paid in capital, and retained earnings of $20,000, $130,000, and $200,000, respectively. Any excess of cost over book value is due to goodwill. Parent accounts for the Investment in subdidiary using the simple equity method
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