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Parent and Sub Inc had the following balance sheets on July 31,2007: The Net Incomes for Parent and Sub Inc for the year ended July 31,2007 were $120,000 and $60,000 respectively.
-Assuming that Parent Inc.purchased 80% of Sub's voting shares on the date of acquisition for $180,000,what would be the journal entry to clear out the Investment in Sub Inc.account assuming any Acquisition differential is to be allocated to the identifiable assets and liabilities of Sub Inc if the Proprietary Method were used?
Implied Warranty of Merchantability
An assurance that a product will meet a reasonable level of quality and reliability for the purpose it was sold for.
Exploded
In non-technical contexts, refers to a rapid and violent expansion or burst, often used metaphorically for rapid increases or expansions.
Electric Pressure Cooker
A kitchen appliance that uses electricity to create a sealed environment, building up pressure to cook food quickly and efficiently.
Magnuson-Moss Warranty Act
A federal law established to improve the information consumers receive about warranties and to provide a means of remedy for breach of warranty.
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