A debit to Goodwill-Subsidiary in a working paper elimination (in journal entry format) for a parent company and its wholly owned subsidiary indicates that the current fair values of the subsidiary's identifiable net assets exceeded their carrying amounts on the date of the business combination.

Question

Quizplus · Accepted Answer

A debit to Goodwill-Subsidiary in a working paper elimination indicates that the purchase price of the subsidiary exceeded the fair values of the identifiable net assets acquired, resulting in the recognition of goodwill.

A Debit to Goodwill-Subsidiary in a Working Paper Elimination (In