Buttenhaus, a German company that reports using IFRS, has a financial relationship with Zeta, but does not own any of its voting stock When should Buttenhaus consolidate Zeta's accounts with its own in its annual report A If Buttenhaus controls Zeta's operations, Buttenhaus should consolidate it B Never C If Zeta is a variable interest entity and a special purpose entity, Buttenhaus should consolidate it D If Zeta is a variable interest entity and Buttenhaus is its primary beneficiary, Buttenhaus should consolidate it A parent sells merchandise to its subsidiary at a markup of 20 on cost In the current year, the subsidiary had $120,000 in merchandise purchased from the parent in its beginning inventory During the current year, the subsidiary paid the parent $720,000 for merchandise, and sold merchandise purchased from the parent to outside customers for $870,000 At year end, the subsidiary has $180,000 in merchandise purchased from the parent in its ending inventory What is consolidated sales revenue for the year A $ 600,000 B $ 720,000 C $ 870,000 D $1,590,000 Potash Corporation acquired the voting stock of Safestyle Company on January 1, 2019 for $50 million Safestyle's book value at the time was $10 million, consisting of $2 million of capital stock and $8 million of retained earnings The $40 million difference between fair and book value was attributed to goodwill It is now December 31, 2020, the end of the accounting year and two years after the acquisition Safestyle's January 1, 2020 retained earnings balance is $11 million, and it reports net income of $1 8 million for 2020 Safestyle declares no dividends and has no other comprehensive income Goodwill from the acquisition was impaired by $1 million in 2019 and $500,000 in 2020 Potash uses the complete equity method to report its investment in Safestyle on its own books What is 2020 equity in net income of Safestyle, reported on Potash's books A $ 800,000 B $1,300,000 C $ 300,000 D $1,800,000

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Buttenhaus, a German company that reports using IFRS, has a financial relationship with Zeta, but does not own any of its voting stock. When should

Buttenhaus, a German company that reports using IFRS, has a financial relationship with Zeta, but does not own any of its voting stock. When should Buttenhaus consolidate Zeta's accounts with its own in its annual report?

	A.	If Buttenhaus controls Zeta's operations, Buttenhaus should consolidate it.
	B.	Never
	C.	If Zeta is a variable interest entity and a special purpose entity, Buttenhaus should consolidate it.
	D.	If Zeta is a variable interest entity and Buttenhaus is its primary beneficiary, Buttenhaus should consolidate it.

A parent sells merchandise to its subsidiary at a markup of 20% on cost. In the current year, the subsidiary had $120,000 in merchandise purchased from the parent in its beginning inventory. During the current year, the subsidiary paid the parent $720,000 for merchandise, and sold merchandise purchased from the parent to outside customers for $870,000. At year-end, the subsidiary has $180,000 in merchandise purchased from the parent in its ending inventory. What is consolidated sales revenue for the year?

A.
$ 600,000

B.
$ 720,000

C.
$ 870,000

D.
$1,590,000

Potash Corporation acquired the voting stock of Safestyle Company on January 1, 2019 for $50 million. Safestyle's book value at the time was $10 million, consisting of $2 million of capital stock and $8 million of retained earnings. The $40 million difference between fair and book value was attributed to goodwill. It is now December 31, 2020, the end of the accounting year and two years after the acquisition. Safestyle's January 1, 2020 retained earnings balance is $11 million, and it reports net income of $1.8 million for 2020. Safestyle declares no dividends and has no other comprehensive income. Goodwill from the acquisition was impaired by $1 million in 2019 and $500,000 in 2020. Potash uses the complete equity method to report its investment in Safestyle on its own books. What is 2020 equity in net income of Safestyle, reported on Potash's books?

A.
$ 800,000

B.
$1,300,000

C.
$ 300,000

D.
$1,800,000