(Answered) Discussionassess the advantages of previous gaap and

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Discussion

Assess the advantages of previous GAAP and current GAAP when the parent company acquires a subsidiary in stages. Decide whether previous GAAP or current GAAP reflects the true value of the subsidiary net assets. Provide support for your rationale.

Evaluate the impact on the parent company's financial statements if the parent company sells a portion of its investment in a subsidiary. Judge if it is a wise time to sell the parent company's stock if the subsidiary stock is selling at a low price. Provide support for your rationale.

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