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Situation: The parent company has previously held some of the investee's shares (without control, joint control or significant influence) and later obtains control over the investee after acquisition of additional shares in the financial year
Required:
Question 1: Provide examples to show (with journal entries and calculations) how the additional shares acquisition should be presented in the parent's separate financial statements and in the group's consolidated financial statements. Ignore tax effects.
Pete Sampras Corporation purchased for $22,500 as a trading investment bonds with a face value of $20,000. At December 31
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