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kjl74
Nov 16, 2009, 11:24 AM
I have a question regarding less than wholly owned Consolidated financial statements.

How do you calculate the investment in a subsidiary if 80% of outstanding common stock is purchased at $30 per share and the common stock, at purchase, on the balance sheet is 600,000 $10 par. I've come up with $1,440,000 just needed to see if that was correct.

rehmanvohra
Nov 16, 2009, 09:57 PM
Cost of investment in subsidiary is $14,400,000. You missed a zero. 600,000 shares x 80% = 480,000 shares x 30 = $14,400,000