Dear all,
 
 
Please help in confirming the merger entry for the following case:
 
Company A acquired 50% interest in Company B during 2004. The other 50% was held by the Company C, Company A’s Parent Company. Upon acquisition, Company A recognized a goodwill under purchase method of accounting.
 
Cost 100
Investment in B – 50
Goodwill 50
 
During 2006, the 50% shares held by the Parent Company was transferred to Company A, giving it the full ownership of Company B. The parent agreed that the credit of 50% will go to ADDITIONAL PAID IN CAPITAL (APIC). During 2006, the …