How does redmond account for the previous 15 percent

Reference no: EM133611022

Question: Redmond, Inc., has held a 15 percent interest in the stock of Lynch Company for several years. Because of the level of ownership, this investment has been accounted for using the fair-value method. At the beginning of the current year, Redmond acquires an additional 70 percent interest, which provides the company with control over Lynch. In preparing consolidated financial statements for this business combination, how does Redmond account for the previous 15 percent ownership interest?

Reference no: EM133611022

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