A parent acquires all of the stock of a subsidiary for $72,000,000 in cash. The...
50.1K
Verified Solution
Link Copied!
Question
Accounting
A parent acquires all of the stock of a subsidiary for $72,000,000 in cash. The fair value of the subsidiary's identifiable net assets is $75,600,000. On its own books, the parent: Select one: a. reports its investment at $72,000,000. b. reports a gain of $3,600,000 in other comprehensive income. c. reports a gain of $3,600,000 in income. d. reports its investment at $75,600,000 with a contra asset allowance of $3,600,000.
A parent acquires all of the stock of a subsidiary for 572,000,000 in cash. The fair value of the subsidiarys identifable net assets is 575,600,000. On its own books, the parent. Seiest one: a. resorts its imvestment at $72000,000. b. reports a gain of 33600,000 in other comprehenvive income. creports a gain of $3,600,000 in income. d. reports its irwestment at $75,600,000 with a contra asset. allowance of $3,600,000
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
