On December 31, 2010, Gary Company owned 51 percent of Allen Company, at which time Gary reported its investment the cost method due to political uncertainties in the country in which Allen was located. On January 2, 2011 the management of Gary Company was satisfied that the political resolved and that the assets of the company were in no danger of nationalization. Accordingly, Gary will prepare consolidated financial statements for Gary and Allen for the year ended December 31, 2011.