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FSA Reading 26 EOC Question 7

A buddy of mine and I were trying to figure out the adjustment they made here. I understand how they arrived at the answer, that part makes sense. Our question was why they are making changes to assets and hence affecting turnover. If they have a 20% stake in the company, it should be accounted for using the Equity method, and using the equity method we do not make any changes due to the assets of the minority owned company. Hence the additional assets being counted makes no sense to me please advise!

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