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  3. on january 1, parent company acquired 30% of sub o

On January 1, Parent Company acquired 30% of Sub outstanding stock for 800,000. For year...

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Accounting

On January 1, Parent Company acquired 30% of Sub outstanding stock for 800,000. For year 1, Sub Had net income of $200,000 and paid dividend of $60,000. On January 1st year 2, parent acquired an additional 45% of subcompany for 2,025,000. The fair value of Sub company on January 1st year 2 was $4,500,000. What is the amount of gain that parent company records in Year 2?a)0b)550,000)1,350,000d)508,000

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