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Agee Company purchased 70% of the outstanding common stock of Himes Corporation. Instructions a- Explain the relationship between Agee Company and Himes Corporation. b- How

Agee Company purchased 70% of the outstanding common stock of Himes Corporation.

Instructions

a- Explain the relationship between Agee Company and Himes Corporation. b- How should Agee account for its investment in Himes? c- Why is the accounting treatment described in (b) useful?

d- Prepare adjusting entry to record fair value, and indicate statement presentation.

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