Question

What is the difference between wholly owned and less than wholly owned control, and what is...

What is the difference between wholly owned and less than wholly owned control, and what is the effect of it on the consolidated balance sheet?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

There is a very simple difference exist between wholly owned control and less than wholly owned control. A wholly owned control exist where a company (Holding) owned 100% equity shares/common stock of another company (Subsidiary).

Less than wholly owned control exist where the holding company holds less than 100% equity shares of the subsidiary.

Effect On Balance sheet

In case of wholly owned control, there is not minority interest appears in the liability side of the company.

While in the case of partly owned, minority interest shown in the liability side of the balance sheet.

Minority interest is Assets owned but not controlled by by the company.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
On January 1, Poe Corp. sold a machine for $4,369,577 to Saxe Corp., its wholly-owned subsidiary....
On January 1, Poe Corp. sold a machine for $4,369,577 to Saxe Corp., its wholly-owned subsidiary. Poe paid $1.1 million for this machine, which had accumulated depreciation of $250,000 on the sale date. Poe estimated a $100,000 salvage value and depreciated the machine on the straight-line basis over 20 years, a policy that Saxe continued. In Poe's December 31 consolidated balance sheet, the accumulated depreciation of this machine should be shown on the consolidated balance sheet as:
On January 1, 2016, Pulte sold a building to its wholly-owned subsidiary, Scott, for $2,614,000. On...
On January 1, 2016, Pulte sold a building to its wholly-owned subsidiary, Scott, for $2,614,000. On that date, Pulte carried the building on its books at an original cost of $840,000 and accumulated depreciation of $257,000. Pulte had estimated 5 years total useful life for the building, and was depreciating it on a straight-line basis with $198,000 estimated salvage value. What net book value for this building should be reported on Pulte's consolidated balance sheet as of 12/31/2016?
On January 1, 2016, Pulte sold a building to its wholly owned subsidiary, Scott, for $2,114,104....
On January 1, 2016, Pulte sold a building to its wholly owned subsidiary, Scott, for $2,114,104. On that date, Pulte carried the building on its books at an original cost of $879,661 and accumulated depreciation of $259,196. Pulte had estimated 6 years total useful life for the building, and was depreciating it on a straight-line basis with $190,785 estimated salvage value. What net book value for this building should be reported on Pulte's consolidated balance sheet as of 12/31/2016?
A 70%-owned subsidiary declares and pays a cash dividend. What effect does the dividend have on...
A 70%-owned subsidiary declares and pays a cash dividend. What effect does the dividend have on retained earnings and noncontrolling interest in the consolidated balance sheet? Decrease in retained earnings and no effect on noncontrolling interest. No effect on retained earnings and a decrease in the noncontrolling interest. Decreases both retained earnings and noncontrolling interest. No effect on either retained earnings or the noncontrolling interest.
what is the difference between load and control
what is the difference between load and control
What is the difference between economic profit and producer surplus? (Brief explain in less than three...
What is the difference between economic profit and producer surplus? (Brief explain in less than three lines)
What is the difference between a control and a process in Internal control? Why is this...
What is the difference between a control and a process in Internal control? Why is this an important distinction?
Jefferson Millinery, Inc. (JMI) decided to liquidate its wholly owned subsidiary, 8 Miles High, Inc. (8MH)....
Jefferson Millinery, Inc. (JMI) decided to liquidate its wholly owned subsidiary, 8 Miles High, Inc. (8MH). 8MH had the following tax accounting balance sheet: FMV Adjusted Basis Appreciation Cash $ 252,250 $ 252,250 Building 86,750 28,250 58,500 Land 165,500 101,000 64,500 Total $ 504,500 $ 381,500 $ 123,000 What amount of gain or loss does 8MH recognize in the complete liquidation? b. What amount of gain or loss does JMI recognize in the complete liquidation?
Assume that a parent company purchased less than 100% of the voting common stock when it...
Assume that a parent company purchased less than 100% of the voting common stock when it acquired a controlling interest in a subsidiary on August 15, 2019. The parent uses the equity method to account for the subsidiary on its pre-consolidation books. Both companies have a December 31, 2019 fiscal year end. Which of the following statements is correct? A.In the balance sheet prepared immediately after the acquisition, the parent company's pre-consolidation retained earnings will always equal consolidated retained earnings....
What are the definations and difference between Computer Instruction, Micro Operation and Control Unit?
What are the definations and difference between Computer Instruction, Micro Operation and Control Unit?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT