Question: undefined Brief Exercise 9-26 Martinez Corp. is facing a decision as to whether to purchase 40% of Kyla Corp.'s shares for $2.00 million cash, giving
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Brief Exercise 9-26 Martinez Corp. is facing a decision as to whether to purchase 40% of Kyla Corp.'s shares for $2.00 million cash, giving Martinez significant influence over the investee company, or 60% of Kyla's shares for $3.00 million cash, making Kyla a subsidiary company. The book value of Kyla's net assets is $5.00 million (assets are s24 million and liabilities are s19.00 million). How will this investment affect Martinez's statement of financial position if Martinez acquires a 40% interest, assuming Martinez applies IFRS? Indicate the immediate effect on Martinez's total assets, total liabilities, and shareholders' equity. (Enter answers in millions to 2 decimal places, e.g. 1.25. Do not leave any answer field blank. Enter o for amounts and no effect for effects. If an amount reduces the account balance then enter with negative sign.) Assets Liabilities Shareholders' equity $ million million $ million $ million 5 million $ million $ million $ million $ million LINK TO TEXT LINK TO TEXT How will this investment affect Martinez's statement of financial position if Martinez acquires a 60% interest, assuming Martinez applies IFRS? Indicate the immediate effect on Martinez's total assets, total liabilities, and shareholders' equity. (Enter answers in millions to 2 decimal places, e.g. 1.25. Do not leave any answer fleld blank. Enter o for amounts.) Assets Liabilities Shareholders' equity Invest. In Associate million million million Cash million 000 million million million million million
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