Question: QUESTION 2 ( 7 Marks ) DDY Corporation purchased 9 0 % of the common stock of LSG Company on January 1 , 2 0

QUESTION

2 (7

Marks

)

DDY Corporation purchased

90 %

of the common stock of LSG Company on January

1, 2008 .

The cost of the investment was equal to the book value interest acquired. Lansing Company operates two retail stores and an exporting business in London that specializes in buying and selling British tweeds. The subsidiary provided the following financial statements in pounds to the parent company:

LSG Company

Consolideted Income and Retained Eamings Statement

foe the Year Ended December

31, 2014

\

table

[[

Sales

, 2, 900, 000

QUESTION 2 ( 7 Marks ) DDY Corporation purchased

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