The following consolidation adjusting journal entries appeared at the end of a period in which the parent sold all of its shareholding in a subsidiary. It received $1,200,000 for the shares.

The amount of the share of post-acquisition profits and movements in equity balances, contributed to the group by the subsidiary, and attributable to the parent, is:
A) ($250,000).
B) $350,000.
C) $750,000.
D) $1,200,000.
E) Cannot be determined from the information given.

Question

The following consolidation adjusting journal entries appeared at the end of a period in which the parent sold all of its shareholding in a subsidiary. It received $1,200,000 for the shares.

The amount of the share of post-acquisition profits and movements in equity balances, contributed to the group by the subsidiary, and attributable to the parent, is:
A) ($250,000). 
B) $350,000. 
C) $750,000. 
D) $1,200,000. 
E) Cannot be determined from the information given.

Quizplus · Accepted Answer

The Answer of The following consolidation adjusting journal entries appeared at the end of a period in which the parent sold all of its shareholding in a subsidiary. It received $1,200,000 for the shares.

The amount of the share of post-acquisition profits and movements in equity balances, contributed to the group by the subsidiary, and attributable to the parent, is:
A) ($250,000). 
B) $350,000. 
C) $750,000. 
D) $1,200,000. 
E) Cannot be determined from the information given.

The Following Consolidation Adjusting Journal Entries Appeared at the End