In its financial statements, Pare, Inc. accounts for its 15% ownership of Sabe Co. as an available-for-sale security. At December 31, Year 1, Pare has a receivable from Sabe. How should the receivable be reported in Pare's December 31, Year 1, balance sheet?
|
a. | The total receivable should be included as part of the investment in Sabe, without separate disclosure. | |
b. | The total receivable should be reported separately. | |
c. | The total receivable should be offset against Sabe's payable to Pare, without separate disclosure. | |
d. | Eighty-five percent of the receivable should be reported separately, with the balance offset against Sabe's payable to Pare. |
|
