A parent company acquires all of the outstanding common stock of its subsidiary for cash purchase...
A parent company acquires all of the outstanding common stock of its subsidiary for cash purchase price of $265,000. On the acquisition date, the subsidiary reported $60,000 for Common Stock and $45,000 for Retained Earnings. An examination of the subsidiary’s balance sheet revealed that book values were equal to fair values for all assets, except for an unrecorded patent, which the parent values at $95,000.
a. Prepare the entry that the parent makes to record the investment.
b. Prepare the [E] and [A] consolidation entries.
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A parent company acquires all of the outstanding common stock of its subsidiary for cash purchase...
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greater than book value, acquisition journal entries
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exchanging 84,000 shares of its $2 par value Common Stock, with a
fair value on the acquisition date of $45 per share, for all of the
outstanding voting shares of the investee. In its analysis of the
investee company, the parent values all of the subsidiary’s assets
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greater than book value, acquisition journal entries
Assume that the parent company acquires its subsidiary by
exchanging 84,000 shares of its $2 par value Common Stock, with a
fair value on the acquisition date of $44 per share, for all of the
outstanding voting shares of the investee. In its analysis of the
investee company, the parent values all of the subsidiary’s assets
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Consolidation at date of acquisition (purchase price
greater than book value, acquisition journal entries
Assume that the parent company acquires its subsidiary by
exchanging 84,000 shares of its $2 par value Common Stock, with a
fair value on the acquisition date of $45 per share, for all of the
outstanding voting shares of the investee. In its analysis of the
investee company, the parent values all of the subsidiary’s assets
and liabilities at an amount equaling their book values except...
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