Ryan Company purchased 70% of the outstanding common stock of Wayne Corporation. Instructions (a) Explain the relationship

Question:

Ryan Company purchased 70% of the outstanding common stock of Wayne Corporation.

Instructions

(a) Explain the relationship between Ryan Company and Wayne Corporation.

(b) How should Ryan account for its investment in Wayne?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...