Trevi is a publically-traded company. Pisa ia privately-held company.
Trevi acquired 100% of Pisa. Trevi then sold 52% to 6 smaller companies at
a gain.

What should Trevi do--
1. Record the transaction as an asset acquisition and record a gain on the
subsequent disposition in Trevi's December 31 financial statements.
2. Do not record a gain on the sale in Trevi's December financial
statemnets. Record sale proceed against the carrying valu of Trevi's
investment in Pisa.


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

Similar Threads

Mergers 1
mergers 3
merger 1
merger 0
Financial Merger 1
Bank Merger 2
Recording Merger 1
File Merger 2