question archive Computation of gain or loss after deconsolidation Ainun Corporation owns an 80 percent interest in Bahrun Corporation
Computation of gain or loss after deconsolidation Ainun Corporation owns an 80 percent interest in Bahrun Corporation
Subject:AccountingPrice: Bought3
Computation of gain or loss after deconsolidation Ainun Corporation owns an 80 percent interest in Bahrun Corporation. At December 31, 2016, its Investment in Bahrun account is $3,500,000 and consists of $3,000,000 in equity and the remaining as goodwill. On July 1, 2017, Ainun decides to sell 70 percent of Bahrun's interest for $3,000,000, resulting in a deconsolidation. For 2017, Bahrun's net income and dividend are $320,000 and $30,000, respectively. REQUIRED: Calculate the gain or loss resulting from the deconsolidation.
