The treasury stock method treats purchases of a parent’s stock by a subsidiary in the same way as if the parent had repurchased its own stock and are held in the treasury. Normally, the cost method is used by the subsidiary to account for its investment in the parents as these investments are normally are small and almost never have an influence on parents. Income assigned to non-controlling interest in the subsidiary is calculated after deducting dividend income from investment in a parent from subsidiary income. To explain: The recognition of parent company shares held by subsidiary in consolidated balance sheet when the treasury stock method is used.

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Answer 1

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Chapter 9, Problem 9.11Q

To determine

Introduction: The treasury stock method treats purchases of a parent’s stock by a subsidiary in the same way as if the parent had repurchased its own stock and are held in the treasury. Normally, the cost method is used by the subsidiary to account for its investment in the parents as these investments are normally are small and almost never have an influence on parents. Income assigned to non-controlling interest in the subsidiary is calculated after deducting dividend income from investment in a parent from subsidiary income.

To explain: The recognition of parent company shares held by subsidiary in consolidated balance sheet when the treasury stock method is used.

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Answer 2

Question

Chapter 9, Problem 9.11Q

To determine

Introduction: The treasury stock method treats purchases of a parent’s stock by a subsidiary in the same way as if the parent had repurchased its own stock and are held in the treasury. Normally, the cost method is used by the subsidiary to account for its investment in the parents as these investments are normally are small and almost never have an influence on parents. Income assigned to non-controlling interest in the subsidiary is calculated after deducting dividend income from investment in a parent from subsidiary income.

To explain: The recognition of parent company shares held by subsidiary in consolidated balance sheet when the treasury stock method is used.

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Answer 3

Question

Chapter 9, Problem 9.11Q

To determine

Introduction: The treasury stock method treats purchases of a parent’s stock by a subsidiary in the same way as if the parent had repurchased its own stock and are held in the treasury. Normally, the cost method is used by the subsidiary to account for its investment in the parents as these investments are normally are small and almost never have an influence on parents. Income assigned to non-controlling interest in the subsidiary is calculated after deducting dividend income from investment in a parent from subsidiary income.

To explain: The recognition of parent company shares held by subsidiary in consolidated balance sheet when the treasury stock method is used.

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Answer 4

Question

Chapter 9, Problem 9.11Q

To determine

Introduction: The treasury stock method treats purchases of a parent’s stock by a subsidiary in the same way as if the parent had repurchased its own stock and are held in the treasury. Normally, the cost method is used by the subsidiary to account for its investment in the parents as these investments are normally are small and almost never have an influence on parents. Income assigned to non-controlling interest in the subsidiary is calculated after deducting dividend income from investment in a parent from subsidiary income.

To explain: The recognition of parent company shares held by subsidiary in consolidated balance sheet when the treasury stock method is used.

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Answer 5

Chapter 9, Problem 9.11Q

To determine

Introduction: The treasury stock method treats purchases of a parent’s stock by a subsidiary in the same way as if the parent had repurchased its own stock and are held in the treasury. Normally, the cost method is used by the subsidiary to account for its investment in the parents as these investments are normally are small and almost never have an influence on parents. Income assigned to non-controlling interest in the subsidiary is calculated after deducting dividend income from investment in a parent from subsidiary income.

To explain: The recognition of parent company shares held by subsidiary in consolidated balance sheet when the treasury stock method is used.

Answer 6

Chapter 9, Problem 9.11Q

To determine

Introduction: The treasury stock method treats purchases of a parent’s stock by a subsidiary in the same way as if the parent had repurchased its own stock and are held in the treasury. Normally, the cost method is used by the subsidiary to account for its investment in the parents as these investments are normally are small and almost never have an influence on parents. Income assigned to non-controlling interest in the subsidiary is calculated after deducting dividend income from investment in a parent from subsidiary income.

To explain: The recognition of parent company shares held by subsidiary in consolidated balance sheet when the treasury stock method is used.

Answer 7

Chapter 9, Problem 9.11Q

To determine

Introduction: The treasury stock method treats purchases of a parent’s stock by a subsidiary in the same way as if the parent had repurchased its own stock and are held in the treasury. Normally, the cost method is used by the subsidiary to account for its investment in the parents as these investments are normally are small and almost never have an influence on parents. Income assigned to non-controlling interest in the subsidiary is calculated after deducting dividend income from investment in a parent from subsidiary income.

To explain: The recognition of parent company shares held by subsidiary in consolidated balance sheet when the treasury stock method is used.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 9 - Prob. 9.1Q Ch. 9 - Prob. 9.2Q Ch. 9 - Prob. 9.3Q Ch. 9 - Prob. 9.4Q Ch. 9 - Prob. 9.5Q Ch. 9 - Prob. 9.6Q Ch. 9 - Prob. 9.7Q Ch. 9 - Prob. 9.8Q Ch. 9 - Prob. 9.9Q Ch. 9 - Prob. 9.10Q

Solution Summary: The author explains the treasury stock method, which treats purchases of a parent’s stock by subsidiary in the same way as if the parent had repurchased its own stock.

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Chapter 9 Solutions