hard interview accounting question: 3 financial statementsIB
I was having a little bit of trouble with this accounting question.
A plant is sold by Company A for 120M (originally 100M). Comp A receives 50% in cash and 50% of stock of Comp B (the purchaser) (30% ownership). How does it affect the three income statements.
I was having the most trouble with the CF statement... I believe there is an adjustment to the tax on the gains from the sale.