Answers.com > Wiki Answers > Categories > Business & Finance > Business and Industry > Business Finance > How do you record the merger of a subsidiary into its parent when the investment in the subsidiary exceeds the book value of the subsidiary?

How do you record the merger of a subsidiary into its parent when the investment in the subsidiary exceeds the book value of the subsidiary?

Answer:

Unfortunately you have to record it as a loss to the parent company. Or it will at least show as a loss on the financial statements.

First answer by ID1139781649. Last edit by ID1139781649. Question popularity: 2 [recommend question].

[report abuse]

Can you answer these Business Finance questions?

	What is a certificate of indebtedness in a corporation?	Answer it!
	What Dose CST Stand For?	Answer it!
	How risk is related with profit?	Answer it!
	What are the possible problems with speculation?	Answer it!
	Is high employee good or bad?	Answer it!

What is the meaning of subsidiary book?
it is a chapter which is used in the study of accounts.in the intermediate 1st year. cec or mec
Can a subsidiary own its parent company?
Yes
Can a subsidiary company invest in its parent company?
A subsidiary co. can be a member of its holding company if it holds shares of parent co. as a trustee or in form of a deceased shareholder.
Is Fidelity International a subsidiary of Fidelity Investments?
Yes, Fidelity International is an affiliate of Fidelity Investments. Fidelity International was established in 1969 to provide asset management services on an international level.
What is a foreign subsidiary?
A foreign subsidiary is a branch of a company that is run as an independent entity in a country outside of the one in which the parent company is located. For example: Wal-mart