Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. advanced accounting subsidiary sale of shares to n

Advanced Accounting Subsidiary sale of shares to noncontrolling interest. Truck Company owns a...

50.1K

Verified Solution

Question

Accounting

Advanced Accounting

Subsidiary sale of shares to noncontrolling interest.

Truck Company owns a 90% interest in Trailer Company on January 1, 2015, when Trail has the following stockholders equity:

Common stock ($10 par)

$100,000

Paid-in capital in excess of par

250,000

Retained earnings

200,000

Total stockholders equity

$550,000

The investment is purchased for book value, $495,000.

On July 1, 2015, Trail sells 2,000 additional shares to noncontrolling shareholders in a private offering for $75 per share. Trailers net income for 2015 is $70,000, and the income is earned evenly during the year.

Truck uses the simple equity method to record the investment in Trailer. Summary entries are made each December 31 to record the years activity.

Prepare Trucks equity adjustments for 2015 that result from the above activities of Trailer Company during 2011. Assume Truck has $500,000 of paid-in capital in excess of par.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Why would someone need to use a call option? Give a scenario of why someone would...

Finance
1.2K views

Your division is considering two projects with the following cash flows (in millions): 0 1 2 3 Project A -$17 $8 $8 $3 Project B -$26 $13 $10 $9 What are...

Basic Math
1.2K views

Choose the correct unit for each measurement. Then write your answer.linear unitssquare unitscubic units1a. the...

Calculus
1.2K views

Suppose that the functions g x 4x 1 r x 3x 4 Find the following...

Algebra
1.2K views

Add the polynomials 5x 3xy 8y 2x 6xy 5y 5x 3xy 8y 2x 6xy 5y...

Algebra
1.2K views

Exercise 1 24 a Given n E N let Yn be the set of all...

Accounting
1.2K views

asap please fived manulacturing overheads

Accounting
1.2K views

Question 8 of 30. Which of the following is an example of an in-person random...

Accounting
1.2K views

The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified...

Accounting
1.2K views

Cul de las siguientes afirmaciones es verdadera

Accounting
1.2K views

Which of the major reports is necessary - in part - due to accrual accounting...

Accounting
1.2K views

Estado de resultados, estado de ganancias retenidas y balance general Los montos de los...