C243 Advanced Financial Accounting

C243 Advanced Financial Accounting - Chapter 3, 4, 5, Exam Review Questions and answers, Rated A+ Implied Fair Value of Subsidiary formula - -Acquisition Cost / % of Common Stock acquired (represents how much the parent corporation would have to pay if they purchase the entire subsidiary - that is all of the subsidiary's outstanding common stock) Book Value of Subsidiary = Book Value of Subsidiary's Net Assets = VB of Subsidiary's Stockholders' Equity (think A=L+SE or A-L=SE) - C...

Implied Fair Value of Subsidiary formula - -Acquisition Cost / % of Common Stock acquired (represents how much the parent corporation would have to pay if they purchase the entire subsidiary - that is all of the subsidiary's outstanding common stock) Book Value of Subsidiary = Book Value of Subsidiary's Net Assets = VB of Subsidiary's Stockholders' Equity (think A=L+SE or A-L=SE) - Calculation of Differential (excess) - -= Implied FV of Subsidiary - BV of Subsidiary -When you determin...