You work as an accountant for regional CPA firm of Cash and Green. Your supervisor asked you to conduct research for three unrelated clients.

On January 1, the Mo Farah Company agreed to purchase all of Staley Bears interest in the company for $30 per share. Staley, who owns 15%and a controlling interest of Mo Farah previously threatened to engage in a hostile takeover attempt of Mo Farah. For the last two years, Mo Farahs stock traded from about $12-23reaching $23 on December 31 of last year. How should Mo Farah record this transaction?

Required:

a) Provide responses for each independent case on the appropriate accounting treatment.

b) Support your responses with code sections from the FASB Accounting Standards Codification (ASC).