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Debt Equity investments Explain the importance of intent when a company holds debt securities in another company. Address accounting treatment as intent changes. Explain classifications
Debt Equity investments
- Explain the importance of intent when a company holds debt securities in another company. Address accounting treatment as intent changes.
- Explain classifications of non-influential equity, if any, as well as accounting treatment.
- If a Company holds 20% but less than 50% of the securities of another company, how is the investment accounted for? What is the method used.
- If dividends are received due to the equity investment in a 20% to 50% owned company, are the dividends considered income? How is the dividend accounted for?
- When a Company buys 50% of more of another company what steps must it take before making the initial balance sheet consolidation entry using the acquisition method..
- What is Goodwill and what must be done annually to justify its existence?
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