4. Zee Company buys 60 percent of the voting stock of Bee Company with the remaining

40 percent noncontrolling interest held by Bee%u2019s former owners, who negotiated the following

minority rights:

%u2022 Any new debt above $1,000,000 must be approved by the 40 percent noncontrolling

shareholders.

%u2022 Any dividends or other cash distributions to owners in excess of customary historical

amounts must be approved by the 40 percent noncontrolling shareholders.

According to the FASB ASC, what are the issues in determining whether Zee should consolidate

Bee or report its investment in Bee under the equity method?

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