Par Industries owns 7,000,000 shares of Sub Corporation’s outstanding common stock (a 70 percent interest). Theremaining 3,000,000 outstanding common shares of Sub are held by Ott Insurance Company. On Par Industries’consolidated financial statements, Ott Insurance Company is considered: Question 19Answer a. An investee b. A noncontrolling interest c. An associated company d. An affiliated company

Par Industries owns 7,000,000 shares of Sub Corporation’s outstanding common stock (a 70 percent interest). Theremaining 3,000,000 outstanding common shares of Sub are held by Ott Insurance Company. On Par Industries’consolidated financial statements, Ott Insurance Company is considered: Question 19Answer a. An investee b. A noncontrolling interest c. An associated company d. An affiliated company

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter20: Corporations And Parterships

Section: Chapter Questions

Problem 42P

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Pagan Corporation owns 85% of the outstanding voting stock of Sagan Company and Maa Corporation owns the remaining 15% of Sagan's voting stock. On the consolidated financial statements of Pagan Corporation and Sagan, Maa is Question 18Answer a. an affiliate. b. a noncontrolling interest. c. an equity investee. d. a related party.
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Pagan Corporation owns 85% of the outstanding voting stock of Sagan Company, and Maa Corporation owns the remaining 15% of Sagan’s voting stock. On the consolidated financial statements of Pagan Corporation and Sagan, Maa is: Options: a. A noncontrolling interest. b. A related party. c. An equity investee. d. An affiliate.
A
BUSINESS COMBINATION (EQUITY METHOD)
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