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Ellen Elder and her brother, Buster started Elder Company when they each invested $600 in the company. How many reporting entities will there be after the investments?

User Icepickle
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Final answer:

After Ellen and Buster's investment, there will be one reporting entity, which is the Elder Company itself. The company is considered as a single unit for financial reporting purposes.

Step-by-step explanation:

After Ellen Elder and her brother, Buster, each invest $600 into Elder Company, there will be one reporting entity, which is the Elder Company itself. Investment by individual owners does not create separate reporting entities; instead, the company is considered as a single entity for financial reporting purposes.

As investors, Ellen and Buster are part of the ownership, but the company exists as a distinct legal and financial reporting unit.

User Igelineau
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