Business Homework Solutions
#12891
Consoldiation entries/2437
A parent acquired 100% of a subsidiary by exchanging stock valued at $2,000,000. The equity of the sub was $1,500,000 and the fair market value of the fixed assets exceeded the book value by 200,000.
1. What would be the consolidation entry under a purchase?
2. What do you think would be the consolidation entry if the parent only acquired 80% of the subsidiary?
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