Parent bought some of the shares in Subsidiary on December 31, 20X0.
Original purchase of Subsidiary's stock
Number of shares outstanding
90,000
Shares acquired
81,000
Cost per share
$
15.00
Amortization of 100% of excess
12,100
Subsidiary's information for 20X1
Subsidiary's income
78,000
Subsidiary's dividends
11,700
Parts A and B are independent
of each other.
Round your ownership to two
percentage points (e.g., 84.0%
instead of 84.246%)
Part A. On January 1, 20X2, Subsidiary issued additional shares to the market as indicated below. Parent did not
purchase the shares.
Issuance of new shares by Subsidiary
Number of additional shares issued
5,000
Issue price per share
$
20.00
Journalize the entry recorded by Parent when Subsidiary issues additional shares to the market
Complete the chart for 20X2 given the following information
Subsidiary amounts in 20X2
Income
87,000
Dividends
13,000
Parent's income (cost method)
186,000
Minority interest income
Consolidated income
Minority interest equity
Part B. On January 1, 20X2, Parent sold some of the shares as indicated below.
Shares sold by Parent
18,000
Sales price
$
20.00
Journalize the entry to record the sale of shares by Parent