Clam incorporated had an investment of 30% ownership in XYX company, which it accounted for...
70.2K
Verified Solution
Link Copied!
Question
Accounting
Clam incorporated had an investment of 30% ownership in XYX company, which it accounted for using the equity method. In 2020, Clam sold half of the investment and no longer has significant influence. So, Clam switched to accounting for the investment as an available-for-sale security. How would this change be treated in the financial statements? Explain why?
Callum Incorporated used the direct write of method for bad debts. During 2020, Callum switched to using the allowance method. How is this reported in the comparative 2019/2020 financial statements?
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.