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Wild Things, Inc. Wild Things, Inc. is a public corporation that invests in start - up and small to medium - sized exotic animal zoos
Wild Things, Inc.
Wild Things, Inc. is a public corporation that invests in startup and small to medium sized exotic animal zoos throughout the United States. Wild Things, Inc. is not an investment company in accordance with ASC
Wild Things, Inc. holds a percent interest in common stock of OK Zoo OK a small exotic animal zoo in Oklahoma that is a corporation capitalized by common stock outstanding. Wild Things, Inc. has representation on OKs board of directors, controlling two of the ten board seats, and participates in the policymaking process. The remaining percent interest in OK is held by two large investors. The first investor, Lowe LLC Lowe has a percent interest in common stock of OK and controls six of the ten board seats. The other investor, Stark Services Inc. Stark has a percent interest in common stock of OK and controls two of the ten board seats.
Wild Things, Inc. also holds a percent interest in common stock of SC Safari SC a mediumsized exotic animal zoo in South Carolina that is a corporation capitalized by common stock outstanding. Wild Things, Inc. has representation on SCs board of directors, controlling two of the ten board seats, and participates in the policymaking process. Wild Things, Inc. is the largest shareholder in SC followed by four other investors with common stock ownerships that range between percent to percent each, and the remaining common stock ownership is widely dispersed among various other investors. Those four investors control one board seat each, and the remaining four board members are independently appointed by the six board members represented by the largest investors.
In X Wild Things, Inc. made a strategic decision to diversify its investment portfolio and expand its investments to include wildlife rescues and sanctuaries. As a result of this decision, Wild Things, Inc. acquired a percent interest in common stock of Nature Rescue Nature a wildlife rescue facility in Florida that is a corporation capitalized by common stock outstanding. Wild Things, Inc. has representation on Natures board of directors, controlling two of the twelve board seats, and participates in the policymaking process. The remaining percent interest in Nature is held by two large investors. The first investor, Robbins Group Inc. Robbins has a percent interest in common stock of Nature and controls seven of the twelve board seats, including the chairman. An executive from Robbins is also the chief executive officer and the chairman The other investor, Kirk Living Trust Kirk has a percent interest in common stock of Nature and controls three of the twelve board seats.
Required: Use the ASC to answer the following questions. Be sure that you write your answers in full paragraphs which fully discuss the issues involved and the reasons for your answers. Your answers must be supported by citations from the ASC.
Does Wild Things, Inc. have significant influence over OK
Does Wild Things, Inc. have significant influence over SC
Does Wild Things, Inc. have significant influence over Nature Rescue?
What accounting method should Wild Things use to account for each of these investments?
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