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Journal for Equity Method

P owns 30% of S1. (using equity method)

Investment = 30.000 USD

Equity of S1 = 25.000 USD

S1 owns 70% of S2. (using purchase method)

Investment cost = 50.000 USD

Equity of S2 = 30.000

What is the journal of first consolidation in group S1 and group P?

Former Member
replied

Actually goodwill should be 29 (50 -(30 *70%))

Have you checked the accounting technique assignment for the cons group view for cons group P to make sure it is equity and not purchase? In accounting technique, click on P and then change the view to cons group. Here the method should be equity.

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