Duke Corporation owns a 70 percent equity interest in Salem Company, a subsidiary corporation. During the current year, a portion of this stock is sold to an outside party. Before recording this transaction, Duke adjusts the book value of its investment account.

1. What is the purpose of this adjustment?
2. How would the parent record the sales transaction?
3. How would Duke account for the remainder of its investment subsequent to the sale of this partial interest?

Your initial post must be in your own words, be a minimum of 450 words in length, and be supported with a reference. Post at least two peer responses further discussing and exploring the materials covered this week. Peer responses should be a minimum of 200 words.