What is the purpose of the adjustment

Assignment Help Financial Accounting

Reference no: EM13755071

Franklin, Inc. owns 80% of Prevatt Company. During the current year, a portion of the investment in Prevatt is sold. Prior to recording the sale, Franklin adjusts the book value of its investment. What is the purpose of the adjustment?

Answer is supposed to be 400 words but I will take whatever I can get.

Reference no: EM13755071

Questions Cloud

Global financing and exchange rate topic : Prepare a 1,050- to 1,750-word paper in which you analyze the following global financing and exchange rate topic:

Partnership not subject to the passive loss rules : In 2010, Kelly, who earns a salary of $200,000, invests $40,000 for a 20% interest in a partnership not subject to the passive loss rules. Through the use of $800,000 of nonrecourse financing, the partnership acquires assets worth $1 million.

Write speech on viewpoint of las casas explain his opinions : Write a 400-word speech from the viewpoint of Las Casas explaining his opinions and how they affected attitudes in Europe. Use at least two sources beyond the course content.

Investigating the feasibility and desirability : Gladys owns a retail hardware store in Tangipahoa. She is considering opening a business in Hammond, a community located 25 miles away. She incurs expenses of $60,000 in 2011 in investigating the feasibility and desirability of doing so.

What is the purpose of the adjustment : Franklin, Inc. owns 80% of Prevatt Company. During the current year, a portion of the investment in Prevatt is sold. Prior to recording the sale, Franklin adjusts the book value of its investment. What is the purpose of the adjustment?

Discuss some of the security threats a company could face : In 1 - 2 pages, discuss some of the security threats a company could face when adding wireless access points (WAPs) to its network. How could the company reduce these risks

Considering a change in its quality control system : The Brisbane Manufacturing Company produces a single model of a CD player. Each player is sold for $182 with a resulting contribution margin of $71. Brisbane's management is considering a change in its quality control system. Currently, Brisbane spen..

Who was citizen edmond genet : Who was Citizen Edmond Genet? What effect did he have on the establishment of political parties in the US? When and what was Jay's Treaty? What were the issues involved? What was the result?

Identify potential sales and department store transactions : Identify the potential sales and department store transactions that can be stored within the database. Design a database solution and the potential business rules that could be used to house the sales transactions of the department store

User Account

All Pages