Publisher's Synopsis
This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1922 edition. Excerpt: ...fro no subsidiary asset was over-v pany acquired the subsidiary stock, it would seem that th par of the stock issued in p shown on the consolidated' f-, as capital surplus if the diF uaf wffpf company acquired the si the excess would still ap ital surplus. inority, and the holding company's t $24,000. this latter method do so on the rity will share in profits, the holding to "absorb the losses" of the sube organization together, subsidiary may be such an essential hat the holding company will consider s ownership of the stock in spite of seem necessary for the holding comagnanimous position of allowing the subsidiary profits while relieving them the book value of their stock caused by e subsidiary is able to pay its debts the the value of all shares proportionately, where the subsidiary is unable to pay its ary for the holding company to advance to pay the debts and prevent the creditors.bsidiary into liquidation, ustration, let us assume that the subsidiary d in a deficit equal to the capital stock, and company has not seen fit to make advances aess out of the hands of the creditors. The e take possession, and the holding company id the minority stockholders lose theirs. But ppany does not bear the minority's loss. r hand, assume that the holding company has es, so that the condition is as follows: SUBSIDIARY BALANCE SHEET Advances from Holding Company.. $ 50,000 Capital Stock 100,000, company may now take over the assets of the subsettlement of the advances; again the holding cornlose its share of the stock and the minority will lose Tare.. urpose of a balance sheet is to show the present financial on of a business organization. It would seem that a idated balance sheet fulfils this purpose if it shows all of..."
