Deltona Lines Inc

Then Del-Bess would be the entity to grease one(a)s palms the assets from Jay Transportation and lease them to Boson Freight caller-out. The stay 60 million necessary to depot the purchase would be provided by avow financing. There are four principal(prenominal) disciplines within this suit of clothes. The first is, is this a pro tempore image issue for Dalton. Temporary control means that a ancient follow forms a Joint speculation with a secondary company that would be a temporary investiture to help the primary company to acquire the sought company. business structure was formed by 2 or more parties for a particular proposition purpose.Joint ventures usually are limited to one or two projects or purposes. The case Is referring to right-based Joint ventures which benefits foreign and/or local anesthetic private interests, groups of interests, or members of the general public. reach of this would be that partners would save money and get over their risks through ca pital and resource sharing. ane key difference in coalition and Joint venture is that the Joint venture is based on a undivided business transaction. An example Is that Boson Freight Company wanted to Join with Dalton In get Jay Transportation Inc.The second Issue is wherefore Dalton would want to invalidate consolidation. Dalton would want to avoid consolidation because It doesnt own any crude stock or its investment susceptibility be temporary. Due to preferred stock may also be callable, centre that the company has the option to purchase the shares from shareholders at anytime for any reason (usually for a premium). A third issue is how Dalton should account for their investment for financial report purposes (equity or cost). Del-sees supplementary should be reported under the equity method by Dalton because of 80 part controlling Interest.Under equity method, we record the investments at cost and adjust for earnings, losses, and dividends. Dalton would have amalgamat e financial statements due to 80 per centum voting preferred stock. The last issue for Dalton is does the fair value method constitute a viable option for inform and why or why not. Yes. Dalton Flanagan reporting would report Investment at cost, indeed by using the working paper entries to adjust cost to fair alee this would allows the two companies to consolidate the subsidiary (Dell-Bess) with the get up (Dalton) and identify the controlling interest share.