USA how to account for subsidiary company ownership in a holding company/subsidiary structure?

Dec 23, 2016
Reaction score
United States
I would need to record ownership of subsidiary B in the books of Holding Parent A under the following 2 possible scenarios:

1) A purchases B from myself for $1. stock certificates are assigned to A. B becomes an asset on A's books.
2) A forms B, using its own funds from the start. B becomes an asset of A.

also, what would the correct value of B to use on the books of A be? the par value of the shares of B or the values from its balance sheet at year's end? would this value have to be updated every year at year's end?

Holding Parent A is an LLC treated as a C-Corp for tax purposes.
Subsidiary B is a C-Corp.


Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question