Question: The fair value of Wallis Inc s depreciable assets exceeds thei
The fair value of Wallis, Inc.'s depreciable assets exceeds their book value by $50 million. The assets have an average remaining useful life of 15 years and are being depreciated by the straight-line method. Park Industries buys 30% of Wallis's common shares. When Park adjusts its investment revenue and the investment by the equity method, how will the situation described affect those two accounts?
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