A parent company exchanges 20,000 shares of its $2 par value common stock, with a...
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Accounting
A parent company exchanges shares of its $ par value common stock, with a fair value of $share for all of the shares owned by the subsidiarys shareholders. On the acquisition date, the subsidiary reported $ of contributed capital ie common stock and $ of Retained Earnings. An examination of the subsidiarys balance sheet revealed that book values were equal to fair values for all assets except for PPE net which has a book value of $ and a fair value of $
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