On August 31, Year 6, Plow Inc. purchased 75 percent of the outstanding common shares...
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On August Year Plow Inc. purchased percent of the outstanding common shares of Share Inc. for $ On January Year Share had common shares of $ and retained earnings of $ At the date of acquisition, plant and equipment on Shares books was undervalued by $ This plant had a remaining useful life of five years. The balance of the acquisition differential was allocated to unrecorded trademarks of Share to be amortized over a year period. Shares net income for Year was $ earned evenly throughout the year. On December Year Share declared and paid dividends of $ On December Year Plow sold percent of its percent interest in Share for $ How will the gain or loss from partial disposition of ownership in Share be presented on Plows consolidated financial statements on December Year Multiple Choice It will appear on the consolidated income statement. It will appear as a direct charge or credit to owners equity on the consolidated balance sheet. It will not appear on the consolidated financial statements. It will appear in the notes only.
On August Year Plow Inc. purchased percent of the outstanding common shares of Share Inc. for $ On January Year Share had common shares of $ and retained earnings of $ At the date of acquisition, plant and equipment on Shares books was undervalued by $ This plant had a remaining useful life of five years. The balance of the acquisition differential was allocated to unrecorded trademarks of Share to be amortized over a year period. Shares net income for Year was $ earned evenly throughout the year. On December Year Share declared and paid dividends of $
On December Year Plow sold percent of its percent interest in Share for $
How will the gain or loss from partial disposition of ownership in Share be presented on Plows consolidated financial statements on December Year
Multiple Choice
It will appear on the consolidated income statement.
It will appear as a direct charge or credit to owners equity on the consolidated balance sheet.
It will not appear on the consolidated financial statements.
It will appear in the notes only.
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