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Which of the following is not a potential loss or return of a variable interest entity? Entitles holder to residual profits. Entitles holder to benefit
Which of the following is not a potential loss or return of a variable interest entity?
Entitles holder to residual profits.
Entitles holder to benefit from increases in asset fair value.
Entitles holder to receive shares of common stock.
If the variable interest entity cannot repay liabilities, honoring a debt guarantee will produce a loss.
If leased asset declines below the residual value, honoring the guarantee will produce a loss.
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