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.
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.