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 Conservative's book value of assets transferred to Spin Company?

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 Conservative's book value of assets transferred to Spin Company?

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 Conservative's book value of assets transferred to Spin Company?

In Order to Reduce the Risk Associated with a New