Question: Why do companies invest in other companies
Why do companies invest in other companies?
Answer to relevant QuestionsWhat is a subsidiary? How are subsidiaries accounted for? Explain.On December 31, 2017, Kootuk Inc. (Kootuk) pur chased 75 percent of the common shares of Grimmer Ltd. (Grimmer) for $3,500,000. At the time of the purchase, Kootuk's management made the following estimates of the fair values ...Explain how the following items would affect consolidated net income in the year a subsidiary is purchased and in the year after:a. Impairment of the value of goodwill.b. Land with a carrying amount of $2,000,000 on the ...Guilds Inc. (Guilds) is a 100-percent owned subsidiary of Nutak Ltd. (Nutak). During the year ended August 31, 2017, Guilds sold merchandise costing $300,000 to Nutak for $750,000. These were the only transactions that Nutak ...Which stakeholder is the most important to an entity? Respond from the perspective of the entity and a stakeholder.
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