The fair value of Carnes' Land and Buildings are $650,000 and $550,000, respectively. On May 1, 2000, Riley Company issues 30,000 shares of its $10 par value ($25 fair value) common stock in exchange for all of the shares of Carnes' common stock.
On May 1, 2000, what value is assigned to the investment account?© BrainMass Inc. brainmass.com June 3, 2020, 11:38 pm ad1c9bdddf
Because the purchase method of accounting records the acquisition of a subsidiary at its fair ...
This solution illustrates what value to use to initially record the purchase of a subsidiary.