Question
I have two (2) Accounting questions that I need with. 1.Prior to 2008, CBS Corp owned approximately 18% of Westwood One Inc which managed the
I have two (2) Accounting questions that I need with.
1.Prior to 2008, CBS Corp owned approximately 18% of Westwood One Inc which managed the CBS Radio Network. CBS, in turn, managed Westwood under a management agreement. Further, one employee of CBS was a member of Westwoods board of directors. CBS did not control the board of directors, however. In this situation, how should CBS account for its investment in Westwood One?
2. Consider the following scenario: investor owns 30% of an investee company. The remaining 70% is owned by the investees founder who managed the company since its inception and takes no direction from outsiders. How should the investor account for its investment?
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Intermediate Accounting Volume 1
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
12th Canadian edition
119-49633-5, 1119496497, 1119496330, 978-1119496496
