This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: controlling interest is retained. Book value equivalency prior to new issuance (90% x $600,000) $540,000 Book value of subsidiary after new issuance ($600,000 + $175,000) $775,000 Panton's ownership (23,000 shares/25,000 shares) x 92% Book value equivalency after new issuance $713,000 Investment account after new shares recorded (540,000 + $175,000) $715,000 Adjustment: Decrease investment and additional paid-in capital ($713,000 - $715,000) = $(2,000)...
View Full Document
- Spring '10