On January 1, 2016, Parent Company Purchased 85% of the Common

Essay

On January 1, 2016, 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.
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On January 1, 2017, Subsidiary purchased, from its non-controlling shareholders, 1,000 shares of its common stock, 10% of the stock outstanding on that date.The price paid was $44,000.
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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 2017
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