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?
1. Proceed: $2000k
<br> Equity: $1500k
<br> Purchase Price Diff: $500k allocated ...
The expert examines consolidation entries for an acquisition.