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Bubbly Beverages Inc.BBI) is a producer of carbonated drinks.In 2011 it purchased 2 million of the 3.5 million outstanding shares of Snack's Unlimited, a producer of potato chips and various other snack items.
-What method should BBI use to account for their investment in Snack's Unlimited?

Question

Use the following information to answer questions 
Bubbly Beverages Inc.BBI) is a producer of carbonated drinks.In 2011 it purchased 2 million of the 3.5 million outstanding shares of Snack's Unlimited, a producer of potato chips and various other snack items.
-What method should BBI use to account for their investment in Snack's Unlimited?

Quizplus · Accepted Answer

BBI owns more than 50% of Snack's Unlimited, which means it has control over the company. Therefore, BBI should use the consolidation method to account for its investment.

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