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    kjl74's Avatar
    kjl74 Posts: 1, Reputation: 1
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    #1

    Nov 16, 2009, 11:24 AM
    Less than wholly owned Consolidated Financial Statements
    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's Avatar
    rehmanvohra Posts: 739, Reputation: 27
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    #2

    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
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