situation. I his assignment will help you complete Project Two, where you will analyze complex accounting situations in the context of a business transaction.

Scenario

You own a successful chocolate company and would like to expand your business and invest in an online candy company. You've found the perfect company, Online Confections of a Chocoholic. You have reviewed the $10-K$ report and financial statements. You are satisfied with this choice as an investment. Now, you must decide how much you want to invest in Online Confections of a Chocoholic. You have a choice to own as much as you want to invest.

Once you have decided how much you want to own of Online Confections of a Chocoholic, go ahead and make the purchase. You'll now have to think about journal entries and disclosure statements for your new online$-$based business.

Directions

Determine how much to invest in this new online candy company. Since this is a fictional company, there are no $10-$K reports available. Therefore, you will have to decide on a fictional amount to invest. Use the accounting methods and principles from the Financial Accounting Standards Board $($FASB$)$ Accounting Standards Codification and Generally Accepted Accounting Principles $($GAAP$),$ linked in the Supporting Materials section, to apply the correct method to the given acquisition and to summarize basic journal entries based on the amount invested.

Specifically, you must address the following rubric criteria:

Rationale

Explain the rationale for the accounting method that would be used to consolidate if you decided to acquire $20\%$ or less of Online Confections of a Chocoholic.

Explain the rationale for the accounting method that would be used to consolidate if you decided to acquire between $20\%$ and $50\%$ of Online Confections of a Chocoholic.

Explain the rationale for the accounting method that would be used to consolidate if you decided to acquire more than $50\%$ of the company.