_____ On 4/1/07, Pakco sold its foreign subsidiary for $5,000,000. On this date, the carrying value of the Investment in Subsidiary account was $4,000,000, and the AOCI-Cumulative Translation Adjustment account had a debit balance of $700,000. In the 2007 financial statements, what should Pakco report?

Question

_____ On 4/1/07, Pakco sold its foreign subsidiary for $5,000,000. On this date, the carrying value of the Investment in Subsidiary account was $4,000,000, and the AOCI-Cumulative Translation Adjustment account had a debit balance of $700,000. In the 2007 financial statements, what should Pakco report?
_____ On 4/1/07, Pakco sold its foreign subsidiary for $5,000,000. On this date, the carrying value of the Investment in Subsidiary account was $4,000,000, and the AOCI-Cumulative Translation Adjustment account had a debit balance of $700,000. In the 2007 financial statements, what should Pakco report?

Quizplus · Accepted Answer

The Answer of _____ On 4/1/07, Pakco sold its foreign subsidiary for $5,000,000. On this date, the carrying value of the Investment in Subsidiary account was $4,000,000, and the AOCI-Cumulative Translation Adjustment account had a debit balance of $700,000. In the 2007 financial statements, what should Pakco report?

_____ on 4/1/07, Pakco Sold Its Foreign Subsidiary for $5,000,000