Super Control Group Has the Following Investments A)Explain How These Investments Will Be Classified and Accounted For {CYZ

question 90

Essay

Super Control Group has the following investments:
$\begin{array}{c}\begin{array}{|l|}\hline \\\\\\\hline \text {CYZ Corp }\\\\\hline \text {VWX Inc.}\\\\\\\hline \text {ABC InC}\\\\\\\\\hline \end{array}\begin{array}{l|}\hline \\\\ \text {Transactions}\\\hline \text {- Purchased all of the outstanding shares on }\\\text { Mar 31 for \( \$ 1,500,000 \).}\\\hline \text {- Prirchased \( 80 \% \) for \( \$ 1,000,000 \)}\\\text { Acquired joint control over the strategic, }\\\text {operating and investing decisions on January 1.}\\\hline \text {- Purchased \( 25 \% \) of the outstanding shares on}\\\text { June 30 for \( \$ 300,000 \).}\\\text {- Super Control can appoint one member to the}\\\text { Board of Directors.}\\\hline\end{array}\begin{array}{r|}\hline \text {Net income of}\\\text {Investee for}\\\text {calendar 2019}\\\hline \$ 1,000,000 \\\\\hline 200,000\\\\\\\hline 50,000\\\\\\\\\hline \end{array}\begin{array}{r|}\hline\\ \text {Fair value}\\ \text {at Dec, 31, 2019}\\\hline \$ 1,150,000 \\\\\hline175,000\\\\\\\hline320,000\\\\\\\\\hline\end{array}\end{array}$
a)Explain how these investments will be classified and accounted for.
b)How much income will be recorded in 2019 by Super Group for its investment in VWX?
c)How much income will be recorded in 2019 by Super Group for its investment in ABC?

---

Definitions:

Sect

Group that has broken off from an established church.

Church

A formal organization that sees itself and is seen by society as a primary and legitimate religious institution.

Organizational Structure

The system used to define a hierarchy within an organization, outlining the roles, responsibilities, and relationships between individuals within an entity.

Symbolic Interactionism

A sociological perspective that focuses on how individuals interpret and attribute meanings to symbols, behaviors, and events within their social interactions.