If There Is a Balance in the Excess Loss Account

question 103

Short Answer

If there is a balance in the excess loss account when a subsidiary's stock is sold, the balance is recognized as
____________________ gain/income.

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Definitions:

Restrictive Covenant

A clause in a contract which limits certain actions of one or both parties, often used in employment and real estate agreements to protect business interests.

Picket Line

A boundary established by workers on strike, especially at the entrance to the place of work, intended to dissuade or prevent others from entering or leaving.

Canada Labour Code

Federal legislation that regulates employment standards, labour relations, and workplace health and safety in Canada.

Legal Obligation

A duty enforced by law, requiring an individual or organization to follow a specific course of action.