Parent Company owns 90% of ABC Company's 100,000 shares. ABC issues 150,000 new shares to the public for $1 cash per share and Parent Co. acquires none of the shares. Non-controlling Interest recorded on Parent's consolidated balance sheet just prior to this transaction was 17,000. The value of ABC's net assets recorded on Parent's consolidated balance sheet, updated for AAP amortization to the date of the stock issuance, was 457,000 before the stock issuance. The fair value of Parent's retained investment in ABC was 280,000. What is the amount of the gain or loss that must be recorded by Parent on the date of the stock issuance

Activity-based costing (abc) is not truly a cost collection mechanism as much as it is an inventory valuation method. the main purpose for implementing an activity-based cost system is to try to overcome some of the cost distortions that occur in traditional costing from product differences when there are variations in size and complexity. however, one of the disadvantages of utilizing abc is that the additional information gathering necessary to implement costing with that level of detail might be beyond the reach of some companies with resource or financial constraints. with this in mind, what kinds of industries or companies do you think would benefit most from using activity-based costing and why? in designing or modifying an accounting system to capture appropriate costs for abc, what considerations do you think would need to be made?