Which of the following statements is INCORRECT?

• A. Variable interest entities are independent legal entities
• B. To consolidate a variable interest entity, a firm has to own more than 50% of the entitys shares
• C. The party that consolidates a variable interest entity is called the Primary Beneficiary
• D. Special purpose entity is a type of variable interest entity

Which of the following statements about noncontrolling interest in net income is INCORRECT?

• A. It is not eliminated in the basic elimination entry
• B. It reduces the Consolidated Net Income when calculating the Controlling Interest in Net Income.
• C. It is reported on the consolidated statement of income.
• D. It represents the amount of the consolidated net income that belongs to the noncontrolling party

P Corporation acquired 60 percent of S Corporations voting common stock. On the date of acquisition, P had equipment with a book value of $50,000 and a fair value of $150,000. Ss buildings and equipment had a book value of $200,000 and a fair value of $200,000 at the time of the acquisition. What will be the amount at which buildings and equipment will be reported in consolidated statements immediately following the acquisition?

• A. 150,000
• B. 250,000
• C. 200,000
• D. 230,000