On July 1, 2014, Dynamic Corporation purchased for cash 40% of the outstanding capital stock

. On July 1, 2014, Dynamic Corporation purchased for cash 40% of the outstanding capital stock of Cart Company. Dynamic has a fiscal year end of October 31^st and Cart has a fiscal year end of March 31^st. On October 31^st, it has not yet been determined by Dynamic conclusively whether it has the ability to significantly influence Cart’s business operation. Cart Company’s stock is actively traded on the NASDAQ exchange reported its net income for the period ended October 31^st to Dynamic. Cart also paid cash dividends on September 15^th and December 15^th to Dynamic and its other stockholders. How should Dynamic report the above facts in its October 31, 2014 financial statements. Discuss the rationale for your answer.