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Question - Mars X Inc's. CEO. Mrs. Smith, is considering making an equity investment in Water co. She has heard that, based on the ownership % that MarsX purchases of Water Co, The investment will be treated differently for financial reporting purposes on the books of marks. (5% investment, 35% investment , 65% investment). Mrs. Smith has come to you , Marx's controller, for help.
1 - Based on information above, Mrs. Smith wants to know the difference between the percentage ownership (that Mars X will purchase of water co) and treatment for financial reporting purpose.
2 - Bease on information above Mrs. Smith has heard that there are also qualitative consideration not just % ownership that determine treatment of financial reporting purposes. Identify and discus 3 qualitative considerations.
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