A parent company uses U.S. GAAP and presents its financial statements in U.S. dollars. It has a subsidiary in Singapore whose books are maintained in Singapore dollars, following IFRS. The subsidiary's accounts are included in the consolidated financial statements of the parent:

	A.	in Singapore dollars, following IFRS.
	B.	in Singapore dollars, following U.S. GAAP.
	C.	in U.S. dollars, following IFRS.
	D.	in U.S. dollars, following U.S. GAAP.

A company pays $70 million in cash to acquire 70% of the voting stock of another company. The fair value of the noncontrolling interest at the date of acquisition is $25 million, and the book value of the acquired company is $20 million. There are no revaluations of the acquired company's identifiable net assets. Goodwill to the noncontrolling interest, following U.S. GAAP, is:

	A.	$0
	B.	$15 million
	C.	$22.5 million
	D.	$19 million

Ulon is a separate legal entity that provides leasing services. It was formed with an investment of $85 million, of which $76.4 million was financed by debt, and the remainder was provided by outside equity interests. Qualitative analysis is inconclusive in determining whether Ulon is a variable interest entity. Quantitative analysis indicates that Ulon's expected future cash flows are as follows, in millions (assume a one-year time frame, with cash flows occurring at the end of the year):

Expected Cash Flows	Probability
$115.00	0.60
80.50	0.30
46.00	0.10

A risk-adjusted discount rate of 15% is appropriate. Is Ulon likely to be a variable interest entity, per U.S. GAAP?

	A.	No, because the equity interest of $8.6 million is more than expected losses of $6.5 million.
	B.	No, because the equity interest of $8.6 million is more than 10% of total financing.
	C.	Yes, because the equity interest of $8.6 million is less than expected losses of $9 million.
	D.	Yes, because the equity interest of $8.6 million is more than 10% of total assets.