On acquisition date, a contingent liability relating to an unsettled legal claim with a fair...
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On acquisition date, a contingent liability relating to an unsettled legal claim with a fair value of $ wasrecorded in the notes to the subsidiary's financial statements. The parent company must then recognise theliability in its consolidated financial statements at fair value. The company tax rate is In the yearfollowing the acquisition, the subsidiary loses the court case and pays damages of an amount equal to orgreater than $ say $ then the consolidation worksheet journal entry is
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