Subsidiary Stock Transactions and Business Combinations | Accounting

A footnote to the financial statements of Gerber Products Company disclosed a transaction car­ried out by one of the organization's subsidiaries- "The Company's wholly owned Mexican sub­sidiary sold previously unissued shares of common stock to Grapo Coral, S.A., a Mexican food company, at a price in excess of the shares' net book value." The footnote added that Gerber had increased [...]