X * " PEF X + Get Homework Help With Chege xbwhat web Bing REE ACCT 403 (211) Case 1.pdf C O File C:/Users/sultan%20Abdlqader/Downloads/ACCT%20403%20(211)%20-%20Case%201.pdf Lo 1 1 US of 2a + * DAT I Company S("S"), an SEC registrant, is an energy services holding company with utility and nonutility operations. S holds a 50 percent membership interest in Joint Venture E "JVE" or "E") with an unrelated third party, Company D("D"). D is a privately held business that provides engineering, construction, start-up, commissioning, and operating services to energy facilities. The purpose of JVE is to manage and hold investments in 17 limited liability companies that develop.construct, own, and operate power plants (the "LLC") E wholly owns and consolidates the LLC. S has previously concluded that it should record its 50 percent membership interest in E as an equity method investment The following diagram copicts the relationships describal bove S D E 10r. 17 LLCS Case Facts On December 30, 20X5. (the "Closing Date"), S, D. and executed two agreements (the Agreements) whereby S. D, and agreed to enter into a series of simultaneous integrated transactions. The Agreements were negotiated such that each transaction described below was to be executed contemporaneously and in contemplation with one another (the "Transactions"). The Transactions consisted of the following steps: E distributed on a pro rata basis to both Sand D a 50 percent membership interest in 15 of the LICs (subsequently referred to as the "Transferred LLCS"). The remaining two LLC will remain 100 percent owned by E after the Transactions Sold to Dis 30 percent membership interest in seven of the Transferred LLC in exchange for a nole and a 50 pront membership interest in the remaining cight Transferred LLCs. The end result of the Transactions is that will directly own 100 percent of seven of the Transferral LLC (the DLLC") and S will directly own 100 percent of eight of the Transferred LLC (the LLCX) and will bold a note receivable from the "Nole"). S will retain its equity method investment in E and an indirect 50 percent interest in the remaining two LLCs that remain 100 percent owned by E after the HE Type here to search O DOLL NAS... FENG 3:05 PM 12/6/2021 V X (1) PEF X + Get Homework Help With Chege xbwhat web Bing ES ACCT 103 (211) Case 1.pdf O File C:/Users/sultan%20Abdlqader/Downloads/ACCT%20403%20(211)%20-%20Case%201.pdf @ Lo US 2 of 2 a + D AND v Rinterka All Righ Rand C: 21- Assunting fista Rica Combination Achieved in Stages Page 2 Transactions. Sako has a controlling financial interest in the SLC following the Transations. Each transferred LLC istitutes a business The following diagram depicts the entities after the transactions discussed above No S D JVE 8 (SLL 7 ID LLCI 100% 2 LLCS The Agreements were entered into to facilitate D's 100 percent ownership of the DLLCs and S's 100 percent ownship of the S LLC The Transactions were undertaken directly to accomplish this objective. Each step in the Transactions as integrated with and dependent on the others. The only purpose for the multiple steps in the Transactions is for tax reasons and not for legal orbis Required: 1. In the determination of the appropriate accounting, should the Transactions be considered a single transaction or multiple transaction? 2. How should account for the Transactions 3. How should Saccount for its previously held indirect interest in the SILOX and the net assets of the S LLCs acquired? HE Type here to search O DOLL NAS... ENG 3:06 PM 12/6/2021 V X * " PEF X + Get Homework Help With Chege xbwhat web Bing REE ACCT 403 (211) Case 1.pdf C O File C:/Users/sultan%20Abdlqader/Downloads/ACCT%20403%20(211)%20-%20Case%201.pdf Lo 1 1 US of 2a + * DAT I Company S("S"), an SEC registrant, is an energy services holding company with utility and nonutility operations. S holds a 50 percent membership interest in Joint Venture E "JVE" or "E") with an unrelated third party, Company D("D"). D is a privately held business that provides engineering, construction, start-up, commissioning, and operating services to energy facilities. The purpose of JVE is to manage and hold investments in 17 limited liability companies that develop.construct, own, and operate power plants (the "LLC") E wholly owns and consolidates the LLC. S has previously concluded that it should record its 50 percent membership interest in E as an equity method investment The following diagram copicts the relationships describal bove S D E 10r. 17 LLCS Case Facts On December 30, 20X5. (the "Closing Date"), S, D. and executed two agreements (the Agreements) whereby S. D, and agreed to enter into a series of simultaneous integrated transactions. The Agreements were negotiated such that each transaction described below was to be executed contemporaneously and in contemplation with one another (the "Transactions"). The Transactions consisted of the following steps: E distributed on a pro rata basis to both Sand D a 50 percent membership interest in 15 of the LICs (subsequently referred to as the "Transferred LLCS"). The remaining two LLC will remain 100 percent owned by E after the Transactions Sold to Dis 30 percent membership interest in seven of the Transferred LLC in exchange for a nole and a 50 pront membership interest in the remaining cight Transferred LLCs. The end result of the Transactions is that will directly own 100 percent of seven of the Transferral LLC (the DLLC") and S will directly own 100 percent of eight of the Transferred LLC (the LLCX) and will bold a note receivable from the "Nole"). S will retain its equity method investment in E and an indirect 50 percent interest in the remaining two LLCs that remain 100 percent owned by E after the HE Type here to search O DOLL NAS... FENG 3:05 PM 12/6/2021 V X (1) PEF X + Get Homework Help With Chege xbwhat web Bing ES ACCT 103 (211) Case 1.pdf O File C:/Users/sultan%20Abdlqader/Downloads/ACCT%20403%20(211)%20-%20Case%201.pdf @ Lo US 2 of 2 a + D AND v Rinterka All Righ Rand C: 21- Assunting fista Rica Combination Achieved in Stages Page 2 Transactions. Sako has a controlling financial interest in the SLC following the Transations. Each transferred LLC istitutes a business The following diagram depicts the entities after the transactions discussed above No S D JVE 8 (SLL 7 ID LLCI 100% 2 LLCS The Agreements were entered into to facilitate D's 100 percent ownership of the DLLCs and S's 100 percent ownship of the S LLC The Transactions were undertaken directly to accomplish this objective. Each step in the Transactions as integrated with and dependent on the others. The only purpose for the multiple steps in the Transactions is for tax reasons and not for legal orbis Required: 1. In the determination of the appropriate accounting, should the Transactions be considered a single transaction or multiple transaction? 2. How should account for the Transactions 3. How should Saccount for its previously held indirect interest in the SILOX and the net assets of the S LLCs acquired? HE Type here to search O DOLL NAS... ENG 3:06 PM 12/6/2021 V