Question
Tesco Company owns 90% of Blondel Company. The original balances presented for Blondel and Tesco as of January 1, 2013, are as follows: Blondel Company:
Tesco Company owns 90% of Blondel Company. The original balances presented for Blondel and Tesco as of January 1, 2013, are as follows: Blondel Company:
Shares outstanding $110,000
Book value of Blondel 1,300,000
Book value per share $12
Tesco Company:
Shares owned of Blondel 100,000
Book value of investment $1,180,000
Blondel sells 20,000 shares of previously unissued shares of its common stock to outside parties for $10 per share. What adjustment is needed for Tesco's investment in Blondel account?
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: Clyde P. Stickney, Paul Brown, James M. Wahlen
6th Edition
0324302959, 9780324302950
