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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)...
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This note was uploaded on 02/23/2010 for the course ACCT 20842 taught by Professor Henry during the Spring '10 term at CSU San Bernardino.
- Spring '10