Poncho Company currently owns 100% of the outstanding common voting shares of Sombrero Inc., which has 1,000,000 shares outstanding. Sombrero has one major bondholder (Mr. Botas Inc.) whose Sombrero inc. bonds have a conversion option, which, if exercised would be convertible to 900.000 voting shares. Required: a) Does Poncho have control over Sombrero? Briefly support your answer. b) How should Poncho account for its investment in Sombrero? (2 marks)