Question
Parent Ltd acquires all the issued capital of Subsidiary Ltd for a cash payment of $450,000 on 30 June 2019. As per the statements of
Parent Ltd acquires all the issued capital of Subsidiary Ltd for a cash payment of $450,000 on 30 June 2019. As per the statements of financial position, the subsidiary Ltd's shareholders' equity were as:
Shareholders equity
Share capital: 200,000.
Retained earnings: 280,000.
Write the required consolidation entry to eliminate the investment in Subsidiary Ltd acquired at bargain.
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Auditing And Assurance Services
Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Strawser
2nd Edition
0073128244, 9780073128245
