A parent company purchasd 100% of a subsidiary on 1/1/X1 at a purchase price that...
60.1K
Verified Solution
Link Copied!
Question
Accounting
A parent company purchasd 100% of a subsidiary on 1/1/X1 at a purchase price that was $300,000 in excess of the subsidiarys book value. Of that excess, $200,000 was assigned to an unrecorded patent that is being amortized over 10 years. The remaining $100,000 was assigned to goodwill. In the year X2, the subsidiary sold land to the parent for $100,000. The land was reported on the balance sheet of the subsidiary for $70,000 at the date of sale. The financial statements for the parent and subsidiary for the year ended 12/31/X3 in Excel spreadsheet.
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!
