Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. assume that brown company owns 100% of schroeder c

Assume that Brown Company owns 100% of Schroeder Corporation. Schroeder reports Stockholders’ Equity of $500,000. The...

Free

90.2K

Verified Solution

Question

Accounting

Assume that Brown Company owns 100% of Schroeder Corporation.Schroeder reports Stockholders’ Equity of $500,000. The Equityinvestment was acquired at book value (i.e., no AAP). Schroedersells a 10% interest to outsiders for $115,000. The entry made byBrown as a result of the sale of stock by Schroeder includes:

Answer & Explanation Solved by verified expert
3.7 Ratings (650 Votes)

Difference between the book value and sales proceeds is adjusted to the brown company's owner's equity because control is maintained after the sale transaction.
Schroeder reports Stockholders’ Equity of $500,000 $        500,000
Multiply: Sale of interest 10.00%
Book value of share of investment $          50,000
10% investment sold at value of $        115,000
Less: Book value of share of investment $        (50,000)
Less: 10% Non controlling share in value of sold $        (11,500)
Adjustment to the parent's owners' equity (APIC) $          53,500
Adjustment to the parent's owners' equity (APIC) credited to $          53,500

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!
Become a Member

Other questions asked by students

Q

Is the following map linear? a) F(x1,x2,x3)=(0,0) b) L:R2→R2 defined by L(x1,x2)=(3x1−2x2,x2) c) f:R→R defined by f(x)=2x

Basic Math
Q

A symmetrical 2D plate is bounded by the curves ? = 2?^2 , ? = 6?...

Advance Math
Q

Phylogenetic Reconstruction - Please provide a behavioral phylogenetic reconstruction of these groups of birds (how the Darwinian...

Biology
Q

1) For x ¼ \"110010\", of type BIT_VECTOR(5 DOWNTO 0), determine the values of the shift operations...

Electrical Engineering
Q

Which of the following correctly describes the pathway taken by a protein destined for secretion...

Biology
Q

vx105 ms 2 55 4 35 5 20 Out of electron proton which one will...

Physics
Q

In general, for the same frequency, a sound with larger amplitude (a) will have greater...

Physics
Q

Which trigonometric statement is NOT an identity Select one a cse 0 1 cot 0...

Geometry
Q

On July 23 of the current year, Dakota Mining Company pays $6,745,200 for land estimated...

Accounting
Q

On January 1, 2020, Alaska Corporation purchased P1,000,000 10% bonds for P1,051,510 (including broker's commission...

Accounting
Q

I need help on the statement of stockholder's equity Exercise 15-18 (Part...

Accounting
Q

Elizabeth Merc bought 6 bonds of VBF Company 8 1/2, 17 at 92 and 8...

Accounting