Company A acquired a 70% holding in Company B on 1 January 20X4 for $600,000. At that date the fair value of the net assets of Company B was $700,000. Company A measures non-controlling interest at its share of net assets. On 31 December 20X6 Company A sold all its shares in Company B for $950,000. At that date the fair value of Company B's net assets was $850,000. Goodwill was not impaired. What was the profit or loss on disposal to be recognised in the consolidated financial statements of Company A?
Company A acquired a 70% holding in Company B on 1 January 20X4 for $600,000. At that date the fair value of the net assets of Company B was $700,000. Company A measures non-controlling interest at its share of net assets. On 31 December 20X6 Company A sold all its shares in Company B for $950,000. At that date the fair value of Company B's net assets was $850,000. Goodwill was not impaired. What was the profit or loss on disposal to be recognised in the consolidated financial statements of Company A?
Chapter20: Corporations: Distributions In Complete Liquidation And An Overview Of Reorganizations
Section: Chapter Questions
Problem 35P
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Company A acquired a 70% holding in Company B on 1 January 20X4 for $600,000. At that date the fair
value of the net assets of Company B was $700,000. Company A measures non-controlling interest at its
share of net assets.
On 31 December 20X6 Company A sold all its shares in Company B for $950,000. At that date the fair value
of Company B's net assets was $850,000.
What was the profit or loss on disposal to be recognised in the consolidated financial statements of Company
A?
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