1. company A transferred $2,000,000 of accounts receivable to a newly established company called Former Planets, Inc., whose sole purpose was to buy and service accounts receivable from company A. company A received an 80 percent interest in Former Planets, Inc., which is a qualified special purpose entity (SPE). The remainder of the Former Planets shares was publicly traded. Which method should company A use to account for this special purpose entity at year end?

		Consolidation accounting
		Mark-to-market accounting as a trading security - wrong
		Mark-to-market accounting as available-for-sale investment
		Held-to-maturity accounting

2. YING Enterprises received dividends from its common stock investments during the year as follows:A cash dividend totaling $240,000 from its trading security investment in Cook Corporation, when the market price of Cook's shares was $30 per share. A cash dividend of $40,000 from Meyer Corp. in which YING owns a 40% interest. How much dividend income should Yang report in its Income Statement?

		$200,000
		$240,000
		$256,000
		Wrong -$224,000

3. company A Products transferred $300,000 of accounts receivable to a newly established subsidiary whose sole purpose was to buy and factor accounts receivable from COMPANY A. COMPANY A received a 65 percent interest in the subsidiary while another company contributed $140,000 cash to be a 35 percent owner. During the first year, the subsidiary reported $320,000 of revenue, $240,000 of expenses, and paid $48,000 of cash dividends.At what value will this variable interest entity be reported on COMPANY A Products balance sheet at year end, immediately prior to consolidation?

		$320,800
		Wrong $264,800
		$351,200
		$240,000