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Which of the following questions would be relevant when determining whether or not the reporting entity would consolidate a variable interest entity (VIE)? (choose al
Which of the following questions would be relevant when determining whether or not the reporting entity would consolidate a variable interest entity (VIE)? (choose al that apply) Do the provisions of the VIE allow one or more other shareholders to purchase the VIE from the reporting entity for a "bargain price" after a predefined period of time? Is the reporting entity required absorb the losses of the VIE? ~ Did the reporting entity provide at least 90% of the capital for the formation of the VIE? Will the VIE cease to exist after a predetermined period of time or after it has accomplished its stated purpose? Does the reporting entity own at least 50% of the stock of the VIE? Will the VIE insulate the reporting entity from risk (e.g., hedging, R&D activities, joint ventures)? Can the reporting entity control, either directly or indirectly, the primary activities of the VIE? Can the reporting entity claim the profits of the VIE
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