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Your company purchases a 6 0 % share in ABC Corporation. As the accountant, how do you treat the revenue, expense, assets and liabilities of
Your company purchases a share in ABC Corporation. As the accountant, how do you treat the revenue, expense, assets and liabilities of ABC Corporation?
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Depreciate the assets minus revenue on the balance sheet.
These are ignored by the investor company.
Combine the revenue, expenses, assets and liabilities with that of the investor company.
Proportionately recognize in the investor companys income statement.
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