Saluki Corporation establishes Rehn Company to provide services to a special sector. The governing documents limit Rehn's activities and provide for participation rights to Saluki Corporation of 40% of Rehn's net income. Saluki does not own any equity shares in Rehn. Due to limited equity investors, Rehn is not able to obtain a loan without Saluki guaranteeing the debt. There is also a cap on how much profit equity investors can earn. At the end of the second year of operations, Rehn reports net income of $200,000. Saluki reports $500,000 of net income before consideration of its interest in Saluki. How much income will Saluki Corporation report on its consolidated financial statement?

Question 10 options:

	$500,000, there is not consolidation as Rehn does not meet requirements to be a VIE
	$580,000
	$700,000
	$620,000