Teal Corporation is the primary beneficiary of a variable interest entity with total assets of $500,000, liabilities

Question:

Teal is the primary beneficiary of a variable interest entity with total assets of $500,000, liabilities of $470,000, and owners’ equity of $30,000. Because Teal owns 25 percent of the VIE’s voting stock, it reported a $7,500 investment in the VIE in its Teal reported total assets of $190,000 (including its investment in the VIE), liabilities of $80,000, of $15,000, and retained earnings of $95,000 in its a consolidated in good form for Teal, taking into consideration that it is the primary beneficiary of the variable interest entity.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...