USA Shutting down a wholly owned foreign subsidiary?

[AGH the CPA]

Situation

Company owns a wholly owned subsidiary in a foreign country. Subs has been shut down for a while but pending any final tax bills or fees, sub has maintained a bank balance. Its now time to shut everything down. What steps does the parent need to take to get the sub off their books?

Currently shows a foreign stock investment of 10k and note receivable for 10k. Bank balance is 10k.

 

[kirby]

Please clarify,
Parent has the stock on its books?
Parent has note on its books AND it is receivable from sub?
Sub has bank balance of 10k?
Are there any foreign currency translation accounts on books of parent related to sub?

 

[AGH the CPA]

Parent has stock on its boooks
Parent has note receivable and sub has note payable
Sub has no equity on books
Sub has cash approx equal to note in the bank
There are no translation accounts on parents books.

(there is essentially no sub left - no personnel, no one doing financial statements)

 

[kirby]

Have sub pay the 10k loan to parent
Parent books:
Dr cash 10k
Cr note receivable 10k

Then write off the investment in sub
Parent books:
Dr Loss on closure of sub 10k
Cr investment in stock of fgn sub 10k