Advanced financial accounting


Question #1: Tree, Inc., has held a 10 percent interest in the stock of Limb Company for several years. Because of the level of ownership, this investment has been accounted for using the fair- value method. At the beginning of the current year, Tree acquires an additional 70 percent interest, which provides the company with control over Limb. In preparing consolidated financial statements for this business combination, how does Tree account for the previous 10 percent ownership interest
Question Two: Franklin, Inc. owns 80% of Prevatt Company. During the current year, a portion of the investment in Prevatt is sold. Prior to recording the sale, Franklin adjusts the book value of its investment. What is the purpose of the adjustment?

Get instant answers now at a 30% discount


This is the workmanship which is identified with the tolerable individuals and loads of the general population are demonstrating their enthusiasm for this field and get best essays uk from us. I am so amped up for this workshop and I need to join this field since it is my best leisure activity.