On January 1, 2016, Parent Company Purchased 85% of the Common

question 34

Essay

On January 1, 2016, Parent Company purchased 85% of the common stock, 8,500 shares, of Subsidiary Company for $317,500.On this date, Subsidiary had common stock, other paid-in capital, and retained earnings of $50,000, $100,000, and $200,000 respectively.Any excess of cost over book value is due to goodwill.
?
On January 1, 2017, Subsidiary purchased, from its non-controlling shareholders, 1,000 shares of its common stock, 10% of the stock outstanding on that date.The price paid was $44,000.
?
Required (round all amounts to whole dollars; round percentages to one decimal: XX.X%)
a.Prepare an analysis to determine Parent's revised ownership interest following Sub's treasury stock transaction.
b.Complete the Figure 8-11 worksheet for consolidated financial statements for 2017
?

---

Definitions:

Preponderance of Evidence

A standard of proof in civil cases, which requires that the greater weight of the evidence must support the party's case.

Reasonable Suspicion

A legal standard of proof in United States law that is less than probable cause, the standard for arrests, but more than an inchoate and unparticularized suspicion or hunch, used to justify brief stops and detentions, but not full searches.

Coin Flip

A simple randomization technique used to select one of two options, often used in decision making, games, and settling disputes.