Cru Manufacturing (CruMan) buys some of its critical manufacturing raw materials from Sader Industries. To gain...

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Cru Manufacturing (CruMan) buys some of its critical manufacturing raw materials from Sader Industries. To gain influence, CruMan executed the following transactions: January 1, 2014: Purchased 10% of Sader's outstanding stock July 1, 2015: Increased ownership share to 25% of Sader's outstanding stock January 1, 2016: Increased ownership to 80% of Sader's outstanding stock .. .. CruMan is a calendar year company. Describe the financial reporting methodologies used by CruMan at the end of each year 2014, 2015, and 2016. Briefly describe the important philosophical underpinnings of each method. Note that CruMan purchased the 2015 stock midyear. In your answer, indicate the impact of a midyear acquisition on CruMan's financial reporting of its ownership increase. (Note: Intra-entity transactions need not be covered in your answer. The second question covers intra-entity.) CruMan now owns 80% of Sader Industries. Approximately 40% of Sader's annual sales and profits are earned from sales to CruMan. Some of Sader's product remains in CruMan's inventory at the end of any given reporting period. Discuss, in list form, the considerations (i.e. eliminations, adjustments) necessary when preparing financial statements for CruMan under this scenario. Cru Manufacturing (CruMan) buys some of its critical manufacturing raw materials from Sader Industries. To gain influence, CruMan executed the following transactions: January 1, 2014: Purchased 10% of Sader's outstanding stock July 1, 2015: Increased ownership share to 25% of Sader's outstanding stock January 1, 2016: Increased ownership to 80% of Sader's outstanding stock .. .. CruMan is a calendar year company. Describe the financial reporting methodologies used by CruMan at the end of each year 2014, 2015, and 2016. Briefly describe the important philosophical underpinnings of each method. Note that CruMan purchased the 2015 stock midyear. In your answer, indicate the impact of a midyear acquisition on CruMan's financial reporting of its ownership increase. (Note: Intra-entity transactions need not be covered in your answer. The second question covers intra-entity.) CruMan now owns 80% of Sader Industries. Approximately 40% of Sader's annual sales and profits are earned from sales to CruMan. Some of Sader's product remains in CruMan's inventory at the end of any given reporting period. Discuss, in list form, the considerations (i.e. eliminations, adjustments) necessary when preparing financial statements for CruMan under this scenario.