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Posted: March 16th, 2022
Advanced Accounting
You might be an intern in a CPA agency. Your supervisor walks into your cubicle and says, “One in every of our purchasers is considering investing in an organization. He desires to know the way he ought to account for this funding. Be ready to debate it with the consumer tomorrow.”
Write a memo to your supervisor giving your ideas on how this needs to be dealt with by the consumer.
The state of affairs is the next:
o Firm F bought 40% of the excellent inventory of firm Ok on June 30, 20XX.
o Each of the businesses have a December 31st, 12 months finish.
o Firm Ok is a publicly traded firm and studies its web revenue to firm F.
o Firm Ok additionally pays a hefty dividend to the shareholders of firm F.
o How ought to firm F report the above information on its December 31, 20XX steadiness sheet and revenue assertion?
o Help your reply. Advanced Accounting
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