write 400-600 words that respond to the following questions with your thoughts, ideas, and comments.you...
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Accounting
write words that respond to the following questions with your thoughts, ideas, and comments.you are an intern in a CPA firm. Your manager walks into your cubicle and says, "One of our clients is thinking about investing in a company. He wants to know how he should account for this investment. Be prepared to discuss it with the client tomorrow."
Write a memo to your manager giving your thoughts on how this should be handled by the client.
The situation is the following:
Company F purchased of the outstanding stock of company K on June XX
Both of the companies have a December st yearend.
Company K is a publicly traded company and reports its net income to company F
Company K also pays a hefty dividend to the shareholders of company F
How should company F report the above facts on its December XX balance sheet and income statement?
Support your answer.
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