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Company a Owns All of the Outstanding Common Voting Shares

Question 42

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Company A owns all of the outstanding common voting shares of Company B,which is said to have 500,000 shares.However,Company B's bondholders have a conversion option,which,if exercised would be convertible to 600,000 voting shares.50% of Company B's current Board Members are Company A Executives.How should Company A account for its investment in Company B?

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It is clear that Company A does not have...

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