Unformatted text preview: whether or not the sale results in the parent losing control of the subsidiary. If a small enough amount of stock is sold so the parent can maintain effective control of the subsidiary then an adjustment is made to additional contributed capital of the controlling interest, but no gain or loss is recognized on the Income Statement. If, however, the sale results in a loss of control of the subsidiary, the entire interest is adjusted to fair value, and a gain or loss is recorded in income on all stock owned prior to the sale....
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This note was uploaded on 10/18/2011 for the course LITERATURE LIT 101 taught by Professor Stault during the Spring '11 term at Albany State University.
- Spring '11