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Which of the following best describes the disclosure required on the cash flow statement in the year a parent corporation acquires a controlling interest in
Which of the following best describes the disclosure required on the cash flow statement in the year a parent corporation acquires a controlling interest in a subsidiary corporation?
Multiple Choice
The working capital assets acquired, other than cash and cash equivalents, should be presented as an operating activity; the longterm assets acquired should be presented as an investing activity; and the financing acquired should be presented as a financing activity.
The net assets acquired, other than cash and cash equivalents, should be presented as an investing activity, and the method of financing the acquisition should be presented separately.
The net increase in the investment account should be presented as an investing activity, and no other presentation is required.
The net investment should be presented as an operating activity.
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