Subsidiary Company S had the following stockholders’ equity on January 1, 2018, prior to issuing 20,000 additional new shares to noncontrolling shareholders: Common stock ($1 par), 100,000 shares issued and outstanding . . . . . . . Paid-incapitalinexcessofpar .................................. Retainedearnings ............................................ Totalequity ............................................... $ 100,000 1,900,000 2,000,000 $4,000,000 At that time, the parent company owned 90,000 Company S shares. Assume that the parent acquired the shares at a price equal to their book value. What is the impact on the parent’s investment account of the sale of 20,000 additional shares by the subsidiary for $45 per share?
Subsidiary Company S had the following stockholders’ equity on January 1, 2018, prior to issuing 20,000 additional new shares to noncontrolling shareholders: Common stock ($1 par), 100,000 shares issued and outstanding . . . . . . . Paid-incapitalinexcessofpar .................................. Retainedearnings ............................................ Totalequity ............................................... $ 100,000 1,900,000 2,000,000 $4,000,000 At that time, the parent company owned 90,000 Company S shares. Assume that the parent acquired the shares at a price equal to their book value. What is the impact on the parent’s investment account of the sale of 20,000 additional shares by the subsidiary for $45 per share?
Subsidiary Company S had the following stockholders’ equity on January 1, 2018, prior to issuing 20,000 additional new shares to noncontrolling shareholders: Common stock ($1 par), 100,000 shares issued and outstanding . . . . . . . Paid-incapitalinexcessofpar .................................. Retainedearnings ............................................ Totalequity ............................................... $ 100,000 1,900,000 2,000,000 $4,000,000 At that time, the parent company owned 90,000 Company S shares. Assume that the parent acquired the shares at a price equal to their book value. What is the impact on the parent’s investment account of the sale of 20,000 additional shares by the subsidiary for $45 per share?
Subsidiary Company S had the following stockholders’ equity on January 1, 2018, prior to issuing 20,000 additional new shares to noncontrolling shareholders: Common stock ($1 par), 100,000 shares issued and outstanding . . . . . . . Paid-incapitalinexcessofpar .................................. Retainedearnings ............................................ Totalequity ............................................... $ 100,000 1,900,000 2,000,000 $4,000,000 At that time, the parent company owned 90,000 Company S shares. Assume that the parent acquired the shares at a price equal to their book value. What is the impact on the parent’s investment account of the sale of 20,000 additional shares by the subsidiary for $45 per share?
Definition Definition Assets available to stockholders after a company's liabilities are paid off. Stockholders’ equity is also sometimes referred to as owner's equity. A stockholders’ equity or book value generally includes common stock, preferred stock, and retained earnings and is an indicator of a company's financial strength.
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