If a parent company pays more than book value for a 100 percent owned subsidiary,minority interest arises on the consolidated financial statements.

Question

Quizplus · Accepted Answer

If a parent company pays more than book value for a 100 percent owned subsidiary, there would not be any minority interest as the parent company already owns 100% of the subsidiary. The excess amount paid over book value would be recorded as goodwill on the consolidated financial statements.

If a Parent Company Pays More Than Book Value for a 100