Parent company intercompany investment income


Under the equity method of accounting, depreciation and amortization of the date-of-business-combination differences between current fair values and carrying amounts of a subsidiary's identifiable net assets is debited in a journal entry to the:

  • Subsidiary's expense ledger accounts
  • Parent company's expense ledger accounts
  • Subsidiary's Retained Earnings ledger account

Parent company's Intercompany Investment Income ledger account

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Accounting Basics: Parent company intercompany investment income
Reference No:- TGS0717108

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