nsider- CT12-6 Serial Case -hoices ments (Note: This is a continuation of the serial case from Chap- Ou to ters 1 through 11.) vest- The year ended June 30, 2019, has been another successful ition year for ABC. The success, however, has meant that Doug, that Bev, Emily, and Daniel have spent many long hours in acial the business accommodating their clients, both large and SPE small. Doug and Bev have still not had much time to enjoy any of their successes and are considering retiring from (a) the business. The Anthony family has come to know the executives at Software Solutions, a public corporation, and at Com- puhelp Limited, a private corporation. Both of these orga- nizations have been pleased with the service and products that ABC has provided over the years. Joey Vosburgh, the e president of Software Solutions, wishes to strengthen the relationship between ABC and Software Solutions. He recognizes that Doug and Bev are considering retirement. He has put forward an offer for Software Solutions to pur- chase all of the shares that are currently held by the An- thony family. He has also guaranteed employment to both Emily and Daniel for the next two years. Ali Rashid, the president of Compuhelp, learned about the offer put forward by Software Solutions and is concerned that the relationship his company has devel- oped with ABC will not be maintained if it is purchased by Software Solutions. As a result, he has offered to purchase the shares held by Doug and Bev, leaving Emily and Daniel with their 50% ownership interest and the responsibility for running the business. You will recall from Chapter 11 that 100 common shares are owned by each family mem- ber, for a total of 400 common shares. Instructions (a) If Software Solutions were to succeed in the offer to purchase all of the shares of ABC, describe how this investment would be accounted for, and report- ed, in the accounting records of Software Solutions. ABC shares do not trade in an active market. Would a change in the manner in which ABC's accounting records are maintained have to be undertaken? Why or why not? (b) If Compuhelp were to succeed in the offer to pur- chase Bev and Doug's shares (50%) of ABC, describe how this investment would be accounted for in the accounting records of Compahelp. Would a change in the manner in which ABCs accounting records are maintained have to be undertaken? Why or why not? (c) Identify some of the advantages and disadvantages to Bev, Doug, Emily, and Daniel of each of these offers. ider- CT12-6 Serial Case ices cents (Note: This is a continuation of the serial case from Chap- u to ters 1 through 11.) est- The year ended June 30, 2019, has been another successful ion year for ABC. The success, however, has meant that Doug, hat Bev, Emily, and Daniel have spent many long hours in cial the business accommodating their clients, both large and small. Doug and Bev have still not had much time to enjoy PE any of their successes and are considering retiring from a) the business The Anthony family has come to know the executives at Software Solutions, a public corporation, and at Com- puhelp Limited, a private corporation. Both of these orga- nizations have been pleased with the service and products that ABC has provided over the years. Joey Vosburgh, the president of Software Solutions, wishes to strengthen the relationship between ABC and Software Solutions. He recognizes that Doug and Bev are considering retirement. He has put forward an offer for Software Solutions to pur- chase all of the shares that are currently held by the An- thony family. He has also guaranteed employment to both Emily and Daniel for the next two years. Ali Rashid, the president of Compuhelp, learned about the offer put forward by Software Solutions and is concerned that the relationship his company has devel- oped with ABC will not be maintained if it is purchased by Software Solutions. As a result, he has offered to purchase the shares held by Doug and Bev, leaving Emily and Daniel with their 50% ownership interest and the responsibility for running the business. You will recall from Chapter 11 that 100 common shares are owned by each family mem- ber, for a total of 400 common shares. Instructions (a) If Software Solutions were to succeed in the offer to purchase all of the shares of ABC, describe how this investment would be accounted for, and report ed, in the accounting records of Software Solutions, ABC shares do not trade in an active market. Would a change in the manner in which ABC's accounting records are maintained have to be undertaken? Why or why not? (b) If Compuhelp were to succeed in the offer to pur- chase Bev and Doug's shares (50%) of ABC, describe how this investment would be accounted for in the accounting records of Compuhelp. Would a change in the manner in which ABC's accounting records are maintained have to be undertaken? Why or why not? (c) Identify some of the advantages and disadvantages to Bev, Doug, Emily, and Daniel of each of these offers. nsider- CT12-6 Serial Case -hoices ments (Note: This is a continuation of the serial case from Chap- Ou to ters 1 through 11.) vest- The year ended June 30, 2019, has been another successful ition year for ABC. The success, however, has meant that Doug, that Bev, Emily, and Daniel have spent many long hours in acial the business accommodating their clients, both large and SPE small. Doug and Bev have still not had much time to enjoy any of their successes and are considering retiring from (a) the business. The Anthony family has come to know the executives at Software Solutions, a public corporation, and at Com- puhelp Limited, a private corporation. Both of these orga- nizations have been pleased with the service and products that ABC has provided over the years. Joey Vosburgh, the e president of Software Solutions, wishes to strengthen the relationship between ABC and Software Solutions. He recognizes that Doug and Bev are considering retirement. He has put forward an offer for Software Solutions to pur- chase all of the shares that are currently held by the An- thony family. He has also guaranteed employment to both Emily and Daniel for the next two years. Ali Rashid, the president of Compuhelp, learned about the offer put forward by Software Solutions and is concerned that the relationship his company has devel- oped with ABC will not be maintained if it is purchased by Software Solutions. As a result, he has offered to purchase the shares held by Doug and Bev, leaving Emily and Daniel with their 50% ownership interest and the responsibility for running the business. You will recall from Chapter 11 that 100 common shares are owned by each family mem- ber, for a total of 400 common shares. Instructions (a) If Software Solutions were to succeed in the offer to purchase all of the shares of ABC, describe how this investment would be accounted for, and report- ed, in the accounting records of Software Solutions. ABC shares do not trade in an active market. Would a change in the manner in which ABC's accounting records are maintained have to be undertaken? Why or why not? (b) If Compuhelp were to succeed in the offer to pur- chase Bev and Doug's shares (50%) of ABC, describe how this investment would be accounted for in the accounting records of Compahelp. Would a change in the manner in which ABCs accounting records are maintained have to be undertaken? Why or why not? (c) Identify some of the advantages and disadvantages to Bev, Doug, Emily, and Daniel of each of these offers. ider- CT12-6 Serial Case ices cents (Note: This is a continuation of the serial case from Chap- u to ters 1 through 11.) est- The year ended June 30, 2019, has been another successful ion year for ABC. The success, however, has meant that Doug, hat Bev, Emily, and Daniel have spent many long hours in cial the business accommodating their clients, both large and small. Doug and Bev have still not had much time to enjoy PE any of their successes and are considering retiring from a) the business The Anthony family has come to know the executives at Software Solutions, a public corporation, and at Com- puhelp Limited, a private corporation. Both of these orga- nizations have been pleased with the service and products that ABC has provided over the years. Joey Vosburgh, the president of Software Solutions, wishes to strengthen the relationship between ABC and Software Solutions. He recognizes that Doug and Bev are considering retirement. He has put forward an offer for Software Solutions to pur- chase all of the shares that are currently held by the An- thony family. He has also guaranteed employment to both Emily and Daniel for the next two years. Ali Rashid, the president of Compuhelp, learned about the offer put forward by Software Solutions and is concerned that the relationship his company has devel- oped with ABC will not be maintained if it is purchased by Software Solutions. As a result, he has offered to purchase the shares held by Doug and Bev, leaving Emily and Daniel with their 50% ownership interest and the responsibility for running the business. You will recall from Chapter 11 that 100 common shares are owned by each family mem- ber, for a total of 400 common shares. Instructions (a) If Software Solutions were to succeed in the offer to purchase all of the shares of ABC, describe how this investment would be accounted for, and report ed, in the accounting records of Software Solutions, ABC shares do not trade in an active market. Would a change in the manner in which ABC's accounting records are maintained have to be undertaken? Why or why not? (b) If Compuhelp were to succeed in the offer to pur- chase Bev and Doug's shares (50%) of ABC, describe how this investment would be accounted for in the accounting records of Compuhelp. Would a change in the manner in which ABC's accounting records are maintained have to be undertaken? Why or why not? (c) Identify some of the advantages and disadvantages to Bev, Doug, Emily, and Daniel of each of these offers