On July 1, 2011, The Woodward Group purchased for cash 35 percent of the outstanding capital stock of Massey Studios. Both The Woodward Group and Massey Studios have a December 31 year-end. Massey Studios, whose common stock is actively traded in the over-the-counter market, reported its total net income for the year to The Woodward Group and also paid cash dividends on November 15, 2011, to The Woodward Group and its other stockholders.
How should The Woodward Group report the above facts in its December 31, 2011, balance sheet and its income statement for the year then ended? Discuss the rationale for your answer.

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The Answer of On July 1, 2011, The Woodward Group purchased for cash 35 percent of the outstanding capital stock of Massey Studios. Both The Woodward Group and Massey Studios have a December 31 year-end. Massey Studios, whose common stock is actively traded in the over-the-counter market, reported its total net income for the year to The Woodward Group and also paid cash dividends on November 15, 2011, to The Woodward Group and its other stockholders.
How should The Woodward Group report the above facts in its December 31, 2011, balance sheet and its income statement for the year then ended? Discuss the rationale for your answer.

On July 1, 2011, the Woodward Group Purchased for Cash