Problem

Assume that a subsidiary has 10,000 shares of stock outstanding, of which 8,000 shares are...

Assume that a subsidiary has 10,000 shares of stock outstanding, of which 8,000 shares are owned by the parent. What equity method adjustment will be necessary on the parent books if the subsidiary sells 2,000 additional shares of its own stock to outside interests at book value? At an amount in excess of book value?

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Solutions For Problems in Chapter 8