Ask Question
BusinessBusiness
29 October, 16:10

Panda Corporation owns 90% of Squirrel Inc.'s outstanding common stock. The carrying value of the investment in Sam is $180,000 and the fair value is $260,000. Panda sells half its Squirrel Inc. shares for $120,000. What is the carrying value of the remaining shares?

+3
Answers (1)
  1. 29 October, 19:21
    0
    The remaining shares should be carried at its fair value.

    In this case then, the fair value of the remaining shares = $260,000 * (1-0.5) = $130,000

    Explanation:

    According to IFRS 3 (Revised), A certain group may decide to sell its controlling interest in a subsidiary but retain significant influence in the form of an associate, or retain only a financial asset. If it does so, the retained interest is remeasured to fair value, and any gain or loss compared to book value is recognised as part of the gain or loss on disposal of the subsidiary.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Panda Corporation owns 90% of Squirrel Inc.'s outstanding common stock. The carrying value of the investment in Sam is $180,000 and the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
How did horizontal integration enable rockefeller to monopolize the u. s oil industry?
Answers (1)
A profit-maximizing decision must be made about whether to keep a bed & breakfast operating. Until the place sells, the mortgage of $3000/month must be paid, since it is a sunk cost.
Answers (1)
The operating cycle is best described as the time between A. production and sale of inventory. B. the sale of inventory and collection of receivables. C. the formation of the company and the start of operations. D.
Answers (1)
Manuel sued Patricia on a promissory note. Patricia admitted signing the note, but raised the defense that Manuel was not a holder in due course.
Answers (1)
Im se konsa konfizyon moun jis pa konnen ki sa yo di oswa fe ede mwen
Answers (1)
New Questions in Business
Acme Foods wants to make its chips saltier, but it doesn't want to spend more than it has to on salt. A sample of consumers are asked to compare its current chip (saltiness = 100) with saltier versions and to say whether the new version is saltier.
Answers (1)
Which of the following comparisons best isolates the impact of a change in activity on performance?
Answers (1)
If an investor anticipates an annual rental income from a leased property to be $400,000 dollars, this expected sum has a direct bearing on what the investor will pay for the property. This is an example of
Answers (1)
In comparison to industry averages, Okra Corp. has a low inventory turnover, a high current ratio, and an average quick ratio. Which of the following would be the most reasonable inference about Okra Corp.? A. Its current liabilities are too low. B.
Answers (2)
The individual with the highest valuation of the good will win in which of the following auctions? A. Sealed Bid Auction B. English Auction C. Dutch Auction D. All of the above.
Answers (1)
Home » Business » Panda Corporation owns 90% of Squirrel Inc.'s outstanding common stock. The carrying value of the investment in Sam is $180,000 and the fair value is $260,000. Panda sells half its Squirrel Inc. shares for $120,000.
Sign Up Forgot Password?