On January 1, 20X1, Parent Company Purchased 85% of the Common

Essay

On January 1, 20X1, Parent Company purchased 85% of the common stock, 8,500 shares, of Subsidiary Company for $317,500. On this date, Subsidiary had common stock, other paid-in capital, and retained earnings of $50,000, $100,000, and $200,000 respectively. Any excess of cost over book value is due to goodwill.
On January 1, 20X2, Subsidiary purchased, from its noncontrolling shareholders, 1,000 shares of its common stock, 10% of the stock outstanding on that date. The price paid was $44,000.
Required (round all amounts to whole dollars; round percentages to one decimal: XX.X%)
a.
Prepare an analysis to determine Parent's revised ownership interest following Sub's treasury stock transaction.
b.
Complete the Figure 8-11 worksheet for consolidated financial statements for 20X2