Discussion:Accounting for a C Corp purchase of another C Corp
From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
Discussion Forum Index --> Accounting Questions --> Accounting for a C Corp purchase of another C Corp
Wjalverson (talk|edits) said: | 21 March 2008 |
| During last year, one of my C Corp clients purchased another C corp. The purchasing company bought the common stock from the prior stockholders. I've not done this accounting since college (25 years ago) so I feel a bit sheepish asking for assistance. How do I record this purchase on both companies? I will be preparing a consolidated 1120. | |
| March 22, 2008 | |
| It's really been a long time since I've looked at those rules. I think you need to record the investment on the equity method. I remember preparing eliminating entries when we consolidated the reporting, but I can't remember how the transaction was recorded on the other side. I'm also not sure if you need to do anything differently for tax purposes. Sorry. This probably isn't too helpful, but maybe it'll jog your memory a little bit. | |
To join in on this discussion, you must first
log in.
