Which of the following statements concerning the primary beneficiary of a variable-interest entity is / are correct ? I . The primary beneficiary has the ability to direct the most significant economic activities of the variable-interest entity . II . Only one entity can be the primary beneficiary of a variableinterest entity . III . The investor that has the greatest equity ownership in a variable-interest entity will be the primary beneficiary of the entity .
Question 14
Sun Co . is a wholly owned subsidiary of Star Co . Both companies have separate general ledgers , and prepare separate financial statements . Sun requires stand-alone financial statements . Which of the following statements is correct ?
Question 15
P Co . purchased term bonds at a premium on the open market . These bonds represented 20 percent of the outstanding class of bonds issued at a discount by S Co ., P ' s wholly owned subsidiary . P intends to hold the bonds until maturity . In a consolidated balance sheet , the difference between the bond carrying amounts in the two companies would be
Question 16
In which of the following circumstances of a business combination , if any , could the recognition of a gain occur at the time of the combination ?
Question 17