write $400-600$ words that respond to the following questions with your thoughts, ideas, and comments.you are an intern in a CPA firm. Your manager walks into your cubicle and says, "One of our clients is thinking about investing in a company. He wants to know how he should account for this investment. Be prepared to discuss it with the client tomorrow."

Write a memo to your manager giving your thoughts on how this should be handled by the client.

The situation is the following:

$$ Company F purchased $40\%$ of the outstanding stock of company K on June $30,20$XX$.$

$$ Both of the companies have a December $31$st$,$ year$-$end.

$$ Company K is a publicly traded company and reports its net income to company F$.$

$$ Company K also pays a hefty dividend to the shareholders of company F$.$

$$ How should company F report the above facts on its December $31,20$XX balance sheet and income statement?

$$ Support your answer.