Black). Who is correct? Why? Mr. White is correct with the additional $ED,UUU of understated income should be shared in the agreed upon 2:1 ratio. Just because one has taken more cash out than the other does not mean anything the capital balances have nothing to do with the partnership agreement of how the income should be rationed out. 3. (3MP ruIEs are clear about when a company needs to consolidate or not, but companies tend to find loopholes to circumvent this mle. (3MP clearly indicates that consolidated financial statements are \"usually necessary for a fair presentation when one of the companies in the group directly or indirectly has a controlling financial interest in other companies: the usual condition for a controlling financial interest is ownership of a majority voting interest.\" Controlling financial interest means to own morefgreater than 50% of the voting stock of another company. Because of this \"greater than 5D% of the voting stock,\" some of the companies have taken advantage of the criterion, causing serious problems in the business world. Companies were destroyed and with it, employees lost their jobs, their pensions, and 4Ule. So FASB had to make changes to GAAP for consolidations and issued new guidelines. 1' As a student of accounting, you must know these rules. Please research and discuss the new guidelines issued by GAAP for consolidating entities