Write 2 page paper discussing the below topic. In order to get full points for this assignment, you need to ensure that you cover the fully the below questions. The paper is expected to be double spaced, 12 font, times new roman.

Topic: Because of irreconcilable differences of opinion, a dissenting group within themanagement and board of directors of the Algo Company resigned and formed theBevo Corporation to purchase a manufacturing division of the Algo Company.After negotiation of the agreement, but just before closing and actual transfer of the property, a noncontrolling stockholder of Algo notifed Bevo that a priorstockholder's agreement with Algo empowered him to prevent the sale. The non-controlling stockholder's claim was acknowledged by Bevo's board of directors.Bevo's board then organized Casco, Inc., to acquire the minority stockholder's in-terest in Algo for $75,000, and Bevo advanced the cash to Casco. Bevo exercisedcontrol over Casco as a subsidiary corporation with common offcers and directors.Casco paid the noncontrolling stockholder $75,000 (about twice the market valueof the Algo stock) for his interest in Algo. Bevo then purchased the manufacturingdivision from Algo.

a. What expenditures are usually included in the cost of property, plant, andequipment acquired in a purchase and why?

b. i. What are the criteria for determining whether to consolidate thefinancial statements of Bevo Corporation and Casco, Inc.?

ii. Should the fnancial statements of Bevo and Casco be consolidated?Discuss.

c. Assume that unconsolidated fnancial statements are prepared. Discuss thepropriety of treating the $75,000 expenditure in the fnancial statementsof the Bevo as

i. An account receivable from Casco

ii. An investment in Casco

iii. Part of the cost of the property, plant, and equipment

iv. A loss