Question
Pare plc acquired 75% of the shares of Banan plc for $ 90,000 cash on 1 January 2010. At that date, the fair value of
Pare plc acquired 75% of the shares of Banan plc for $ 90,000 cash on 1 January 2010. At that date, the fair value of net assets of Banan plc was $80,000. Banan plc had a profit of $60,000 for the year ends 31 December 2010. Assume that Pare sells its entire 75%% stake in Banan plc for 130,000 on 31 December 2010.
Solve the question in details as we took in class and then answer the questions
- What is the worksheet Journal Entry for the group that should be recorded upon the sale of the entire 75% stake in Banan on 31 December 2010?
- What is the journal Entry that the Parent Company Pare should record upon the sale of the entire 75% stake in Banan on 31 December 2010?
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Fundamental Accounting Principles Volume 2
Authors: John Wild, Ken Shaw, Barbara Chiappetta
21st Edition
0077716663, 978-0077716660
