A variety of organizational structures are used by major companies, and different approaches to consolidation are sometimes found. Two large and familiar U.S. corporations are Union Pacific and Exxon Mobil.
a. Many large companies have tens or even hundreds of subsidiaries. List the significant subsidiaries of Union Pacific Corporation.
b. Exxon Mobil Corporation is a major energy company. Does Exxon Mobil consolidate all of its majority-owned subsidiaries? Explain. Does Exxon Mobil consolidate any entities in which it does not hold majority ownership? Explain. What methods does Exxon Mobil use to account for investments in the common stock of companies in which it holds less than majority ownership?