The comparative consolidated statement of financial position at December 31, Year 2, and the consolidated income statement

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The comparative consolidated statement of financial position at December 31, Year 2, and the consolidated income statement for Year 2, of Parent Ltd. and its 70%-owned subsidiary are shown below.
The comparative consolidated statement of financial position at December 31,

Additional Information
€¢ On December 31, Year 1, Parent owned 100% of Sub. On this date, the share holders€™ equity of Sub amounted to $1,120,000, and the parent€™s unamortized acquisition differential of $565,000 was allocated entirely to the goodwill of Sub.
€¢ On January 1, Year 2, Parent sold 30% of its shares of Sub for $629,000 cash and recorded an increase to retained earnings of $123,500 on the transaction. Parent uses the equity method to account for its investment.
€¢ Parent paid $104,000 in dividends during Year 2.
Required:
Prepare, in good form, a consolidated cash flow statement for Year 2 in accordance with the requirements of IAS 7.

Consolidated Income Statement
When talking about the group financial statements the consolidated financial statements include Consolidated Income Statement that a parent must prepare among other sets of consolidated financial statements. Consolidated Income statement that is...
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Modern Advanced Accounting In Canada

ISBN: 9781259066481

7th Edition

Authors: Hilton Murray, Herauf Darrell

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