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E16-9 Agee Company purchased 70% of the outstanding common stock of Himes Corporation. Instructions (a) Explain the relationship between Agee Company and Himes Corporation.

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E16-9 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? 000

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