The attached discussion question is in two parts and I need at least two paragraphs per part.

Discussion Click the link above to respond to the discussion. If you need help with completing discussions please click here for more information. "Consolidated Financial Statements and Variable Interest Entities" Per the textbook, some investors (e.g., Warren Buffet) have contended that the U.S. GAAP treatment undervalued the parent's investment carrying value for post-control step acquisitions. Construct one (1) argument in which you provide at least two (2) reasons for the U.S. GAAP treatment of reporting additional investments in subsidiaries when the parent previously established control. Provide support for your rationale. Determine the main characteristics of a variable interest entity (VIE). Evaluate the usefulness to investors of the inclusion of VIEs in the company's consolidated financial statements. Provide support for your rationale. "Consolidated Financial Statements - Intra-Entity Asset Transactions" Per the textbook, no official FASB guidance exists on the assignment of income effects on non-controlling interest in the consolidation process, when either the parent transfers a depreciable asset to the subsidiary or vice versa. Suggest one (1) method of accounting for the income effects on the non-controlling interest that you consider most appropriate. Provide a rationale for your response. Assume that company P (parent) uses the equity method to account for its investment in company S (subsidiary). Company P purchases inventory items from company S. According to FASB's guidance, the accountant must remove the inter-company profit from Company S's net income. Determine if the process permanently eliminates the profit from the noncontrolling interest or merely shifts the profit from one period to the next. Provide support for your rationale. "Consolidated Financial Statements - Intra-Entity Asset Transactions" Per the textbook, no official FASB guidance exists on the assignment of income effects on non-controlling interest in the consolidation process, when either the parent transfers a depreciable asset to the subsidiary or vice versa. Suggest one (1) method of accounting for the income effects on the non-controlling interest that you consider most appropriate. Provide a rationale for your response. Assume that company P (parent) uses the equity method to account for its investment in company S (subsidiary). Company P purchases inventory items from company S. According to FASB's guidance, the accountant must remove the inter-company profit from Company S's net income. Determine if the process permanently eliminates the profit from the noncontrolling interest or merely shifts the profit from one period to the next. Provide support for your rationale