Assume that a parent company increases its ownership in a subsidiary
Assume that a parent company increases its ownership in a subsidiary from 55% to 75% through the purchase of additional shares of the subsidiary’s outstanding stock from noncontrolling shareholders for a purchase price of $165,000. Prior to this transaction, the noncontrolling interest reports a balance of $1,350,000 on that date. Prepare the journal entry by the parent to record the purchase. Description
Debit Credit
Answer Equity investment x x
APIC x x
Cash x x
Buy plagiarism free, original and professional custom paper online now at a cheaper price. Submit your order proudly with us
