(Solution) If A Parent Company And Outside Investors Purchase Shares Of A Subsidiary In Relation To Existing Stock Ownership (ratably) Answer A. | Snapessays.com


(Solution) If a parent company and outside investors purchase shares of a subsidiary in relation to existing stock ownership (ratably) Answer a.


If a parent company and outside investors purchase shares of a subsidiary in relation to existing stock ownership (ratably)

 

Answer

 

a. there will be no adjustment to additional paid-in capital regards if the stock is sold above or below book value

 

b. will requirement an investment account adjustment

 

c.

 

will require the elimination of a gain depending upon whether it was conducted at economic arm's length

 

d. will require the elimination of a loss depending upon whether it was conducted at economic's arm length

 


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This question was answered on: May 23, 2022

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