Payne Inc. transferred $2,000,000 of accounts receivable to a newly established company called Former Planets, Inc., whose
Fantastic news! We've Found the answer you've been seeking!
Question:
Payne Inc. transferred $2,000,000 of accounts receivable to a newly established company called Former Planets, Inc., whose sole purpose was to buy and service accounts receivable from Payne, Inc. Payne, Inc. received an 80 percent interest in Former Planets, Inc., which is a qualified special purpose entity (SPE). The remainder of the Former Planets shares was publicly traded. What method should Payne, Inc. use to account for this special purpose entity at year end?
Related Book For
Auditing A Risk Based Approach
ISBN: 9780357721872
12th Edition
Authors: Karla M Johnstone-Zehms, Audrey A. Gramling, Larry E. Rittenberg
Posted Date: