To record the sale of a subsidiary, you would typically make the following journal entries:
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Debit Cash (or Accounts Receivable) for the amount received from the sale.
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Debit Accumulated Loss on Sale of Subsidiary (if applicable) to reflect any loss incurred.
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Credit Investment in Subsidiary for the carrying amount of the subsidiary's net assets.
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Credit Gain on Sale of Subsidiary (if applicable) for any gain realized from the sale.
These entries ensure that the financial statements accurately reflect the transaction's impact on the company’s financial position.
