On July 1,2014,The Plumbing Group purchased for cash 35 percent of the outstanding capital stock of Classet Studios.Both The Plumbing Group and Classet Studios have a December 31 year-end.Classet Studios,whose common stock is actively traded in the over-the-counter market,reported its total net income for the year to The Plumbing Group and also paid cash dividends on November 15,2014,to The Plumbing Group and its other stockholders.
How should The Plumbing Group report the above facts in its December 31,2014,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 1,2014,The Plumbing Group purchased for cash 35 percent of the outstanding capital stock of Classet Studios.Both The Plumbing Group and Classet Studios have a December 31 year-end.Classet Studios,whose common stock is actively traded in the over-the-counter market,reported its total net income for the year to The Plumbing Group and also paid cash dividends on November 15,2014,to The Plumbing Group and its other stockholders.
How should The Plumbing Group report the above facts in its December 31,2014,balance sheet and its income statement for the year then ended? Discuss the rationale for your answer.

On July 1,2014,The Plumbing Group Purchased for Cash 35 Percent