In order to reduce the risk associated with a new line of business,Conservative Corporation established Spin Company as a wholly owned subsidiary.It transferred assets and accounts payable to Spin in exchange for its common stock.Spin recorded the following entry when the transaction occurred:

-Based on the preceding information,what was the book value of Conservative's assets transferred to Spin Company?
A)$243,000
B)$263,000
C)$221,000
D)$201,000

Question

In order to reduce the risk associated with a new line of business,Conservative Corporation established Spin Company as a wholly owned subsidiary.It transferred assets and accounts payable to Spin in exchange for its common stock.Spin recorded the following entry when the transaction occurred:
 
-Based on the preceding information,what was the book value of Conservative's assets transferred to Spin Company?
A)$243,000 
B)$263,000 
C)$221,000 
D)$201,000

Quizplus · Accepted Answer

The Answer of In order to reduce the risk associated with a new line of business,Conservative Corporation established Spin Company as a wholly owned subsidiary.It transferred assets and accounts payable to Spin in exchange for its common stock.Spin recorded the following entry when the transaction occurred:
 
-Based on the preceding information,what was the book value of Conservative's assets transferred to Spin Company?
A)$243,000 
B)$263,000 
C)$221,000 
D)$201,000

In Order to Reduce the Risk Associated with a New