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How to calculate the difference between implied and book

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Reference no: EM132323965

Question

1. Discuss how to calculate the difference between implied and book values and allocate to the subsidiary's assets and liabilities. What happens if the subsidiary is wholly owned?

2. Explain what happens when the subsidiary issues new shares entirely to the parent, and the parent pays either more or less than the book value of the subsidiary shares.

Reference no: EM132323965

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