Parent Inc. purchased 60,000 of the outstanding (specified below) voting shares of Sub, for $625,000 (the total number of outstanding shares varies in the questions below) on January 1, 2021. On the date of acquisition, Sub's common shares and retained earnings were valued at $235,000 and $280,000, respectively. Subs book values approximated its fair values on the acquisition date with the exception of a patent, for which the fair value of the patent was $40,000 greater than book value. <\/p>
Q: Assume that the total number of outstanding shares for Sub was, 80,000 (remember the Parent purchased 60,000). On January 2, 2021, Parent sold 8,000 shares of Sub on the open market for $92,000. What would be the value of the Investment Account after this sale?<\/p>", "transcribed_text": "", "related_book": { "title": null, "isbn": null, "edition": null, "authors": null, "cover_image": null, "uri": null, "see_more_uri": "" }, "free_related_book": { "isbn": "", "uri": "", "name": "", "edition": "" }, "question_posted": "2024-09-11 14:06:35", "see_more_questions_link": "\/study-help\/questions\/business-marketing-2022-June-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/personal-financial-planning\/prepare-a-statement-of-income-and-expenses-1994193", "description": "Prepare a statement of income and expenses.", "stars": 0 }, { "url": "\/medical-supplies-inc-purchases-firstaid-items-from-large-wholesalers-medical", "description": "Medical Supplies, Inc., purchases first-aid items from large wholesalers. Medical Supplies then assembles and sells first-aid kits to businesses and contracts to maintain the first-aid kits. Using...", "stars": 3 }, { "url": "\/study-help\/questions\/parent-inc-purchased-60000-of-the-outstanding-specified-below-voting-10315124", "description": "Parent Inc. purchased 60,000 of the outstanding (specified below) voting shares of Sub, for $625,000 (the total number of outstanding shares varies in the questions below) on January 1, 2021. On the...", "stars": 3 }, { "url": "\/study-help\/questions\/the-question-is-in-the-picture-question-2-21-marks-4388282", "description": "The question is in the picture. Question 2 (21 marks) Florida Company manufactures electronic testing equipment and installs the equipment at customers' sites. Additional information on the...", "stars": 3 }, { "url": "\/study-help\/questions\/a-satellite-is-in-circular-orbit-525-km-above-the-5348730", "description": "A satellite is in circular orbit 525 km above the surface of Earth. Determine the satellite's speed A satellite is in circular orbit 525 km above the surface of Earth. Determine the satellite's speed", "stars": 3 }, { "url": "\/study-help\/questions\/exhibits-income-statement-exhibits-close-all-income-statement-cpa-1008743", "description": "EXHIBITS Income Statement exhibits close all Income Statement CPA Bakers Inc., a calendar year S corporation, is a retailer of gourmet snacks located in Happyville, U.S. CPA Bakers' current year...", "stars": 3 }, { "url": "\/study-help\/questions\/1-hacer-los-asientos-contables-de-las-siguientes-transacciones-la-1347017", "description": "ces This problem is based on the transactions for the Eco Build Company in your text. Prepare journal entries for each transaction and identify the financial statement impact of each entry. The...", "stars": 3 }, { "url": "\/study-help\/questions\/the-marketing-department-of-graber-corporation-has-submitted-the-following-5626069", "description": "The marketing department of Graber Corporation has submitted the following sales forecast for the upcoming fiscal year. Budgeted unit sales First Quarter 16,000 Second Quarter 15,000 Third Quarter...", "stars": 3 }, { "url": "\/study-help\/questions\/tom-negotiates-with-marion-for-the-purchase-of-three-brand-4859386", "description": "Tom negotiates with Marion for the purchase of three brand new cars which he had seen advertised in the local newspaper for 10,000 each. They are both local car dealers. Consider the legal position...", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/after-several-years-of-profitable-operations-javell-the-sole-shareholder-10315123", "next": "\/study-help\/questions\/13to-determine-the-sample-size-for-a-test-of-controls-10315125" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Accounting", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-accounting" }, { "name": "Parent Inc. purchased 60,000 of the outstanding (specified below) voting shares of", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/parent-inc-purchased-60000-of-the-outstanding-specified-below-voting-10315124" } ], "skill_details": { "skill_id": "9", "skill_name": "Accounting", "parent_id": "1" } } } }