following is the total amount of equity revenue that Parco will
have to reverse for 2009 as a result of it ownership of Subco?
Question 12
Which of the following kinds of transactions should be
eliminated in the consolidating process?
Question 13
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 variable-
interest 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