Description of this paper

In the installment acquisition of a controlling interest in a

Description

solution


Question

In the installment acquisition of a controlling interest in a subsidiary, the Retained Earnings of Subsidiary/Investee ledger account is first credited in a journal entry of the parent company/investor to: (Points:1);Close the parent company/investor's revenue or investment income ledger account at the end of the accounting period that the first installment was acquired;Apply retroactively the equity method of accounting;Record the acquisition of a controlling interest in the subsidiary;Close the parent company's Intercompany Investment Income ledger account at the end of the accounting period in which a controlling interest in the subsidiary was acquired

 

Paper#27300 | Written in 18-Jul-2015

Price : $22
SiteLock