MA9-52. Determining the Reporting of an Investment Assume your company acquires 20% of the outstanding common stock of APEX Software as an investment. You also have an option to purchase the remaining 80%. APEX is developing software (its only activity) it hopes 10 eventually package and sell to customers. You do not intend to exercise your option unless its software product reaches commercial feasibility. APEX has employed your software engineers to assist in the development efforts. and you are integrity involved in its software design. Your ownership interest is significant enough to give you influence over APEX's software design specifications.
a. Describe the financial statement effects of the three possible methods to accounting for this investment (fair value, equity. and consolidation).
B. What method of accounting is appropriate for this investment (fair value. equity, or consolidation)? Explain.
MUNDS3. Determining the Reporting of an en Ayo APEX Y EX will come pode.com NEX in the development plan dengan were significant enough five you were e APEX digepec Required Dewhetheme of the week MA9-52. Determining the Reporting of an Investment Assume your company acquires 20% of the outstanding common stock of APEX Software as an invest- ment. You also have an option to purchase the remaining 80%. APEX is developing software (its only activity) it hopes to eventually package and sell to customers. You do not intend to exercise your option unless its software product reaches commercial feasibility. APEX has employed your software engineers to assist in the development efforts, and you are integrally involved in its software design. Your ownership interest is significant enough to give you influence over APEX's software design specifications, Required a. Describe the financial statement effects of the three possible methods to accounting for this investment (fair value, equily, and consolidation). h. What method of accounting is appropriate for this investment (fair value, equity, or consolidation)? Explain. Document1 - Word ences Mailings Review View Tell me what you want to do Aa- 21 1 No Spac... Heading 1 Heading 2 Title 7.A. Normal Paragraph Styles MA9-52 A.) Determining the Reporting of an Investment Assume your company acquires 20% of the outstanding common stock of APEX Software as an investment. You also have an option to purchase the remaining 80%. APEX is developing software (its only activity) it hopes 10 eventually package and sell to customers. You do not intend to exercise your option unless its software product reaches commercial feasibility. APEX has employed your software engineers to assist in the development efforts, and you are integrity involved in its software design. Your ownership interest is significant enough to give you influence over APEX's software design Specifications. B.) What method of accounting is appropriate for this investment (fair value, equity, or consolidation? Explain MUNDS3. Determining the Reporting of an en Ayo APEX Y EX will come pode.com NEX in the development plan dengan were significant enough five you were e APEX digepec Required Dewhetheme of the week MA9-52. Determining the Reporting of an Investment Assume your company acquires 20% of the outstanding common stock of APEX Software as an invest- ment. You also have an option to purchase the remaining 80%. APEX is developing software (its only activity) it hopes to eventually package and sell to customers. You do not intend to exercise your option unless its software product reaches commercial feasibility. APEX has employed your software engineers to assist in the development efforts, and you are integrally involved in its software design. Your ownership interest is significant enough to give you influence over APEX's software design specifications, Required a. Describe the financial statement effects of the three possible methods to accounting for this investment (fair value, equily, and consolidation). h. What method of accounting is appropriate for this investment (fair value, equity, or consolidation)? Explain. Document1 - Word ences Mailings Review View Tell me what you want to do Aa- 21 1 No Spac... Heading 1 Heading 2 Title 7.A. Normal Paragraph Styles MA9-52 A.) Determining the Reporting of an Investment Assume your company acquires 20% of the outstanding common stock of APEX Software as an investment. You also have an option to purchase the remaining 80%. APEX is developing software (its only activity) it hopes 10 eventually package and sell to customers. You do not intend to exercise your option unless its software product reaches commercial feasibility. APEX has employed your software engineers to assist in the development efforts, and you are integrity involved in its software design. Your ownership interest is significant enough to give you influence over APEX's software design Specifications. B.) What method of accounting is appropriate for this investment (fair value, equity, or consolidation? Explain
