ACC 232 Financial Accounting Research Assignment 1 Issued: February 19, 2020 Due: March 4, 2020 Accounting for Long Term Investments Travel America is a manufacturer of recreational vehicles, primarily travel trailers and fifth wheelers. In 2014, Travel America purchased 25% of the outstanding common stock of Wood Creek Motor Homes, a company that manufactures motor home. Travel America anticipated acquiring controlling interest of Wood Creek at some point in the future in order to expand its product line. Travel America accounts for the investment using the equity method In January 2019 Berkshire Hathaway, a Warren Buffet company, acquired 45% of the outstanding shares of Wood Creek Motor Homes and a subsidiary of Berkshire Hathaway (Shaw Industries) also purchased 10% of Wood Creek's outstanding shares. In March 2019 Travel America nominated three of its's company management for the board of directors of Wood Creek. At the May meeting of stockholders, all three of Travel America's nominees were defeated. As a result of the election, the board of Wood Creek is now made up 100% of executive management of companies controlled by Berkshire Hathaway Travel America is wondering how these events affect its accounting policies