Saratoga Corporation owns significant amounts of the common stock in three Japanese corporations The following table describes these investments Representation on the boards of directors of Mishima and Tanizaki is proportional to common stock ownership However, this is not the case at Kawabata Sara...

c Mishima and Kawabata Explanation Saratoga exercises c ...

Saratoga Corporation owns significant amounts of the common stock in three Japanese corporations. The following table describes

Question:

Saratoga Corporation owns significant amounts of the common stock in three Japanese corporations. The following table describes these investments:

Percentage of Common Stock Other Owned by Saratoga Significant Investors Mishima Corporation 85% None Mitsui Corporation owns 51% of Tanizaki's Tanizaki Corporation 35% common stock Softbank owns 20% Kawabata of Kawabata's Corporation 40% common stock

Representation on the boards of directors of Mishima and Tanizaki is proportional to common stock ownership. However, this is not the case at Kawabata. Saratoga has appointed five of Kawabata’s eight directors. All eight directors have voting rights. When preparing consolidated financial statements, which of these investments would Saratoga treat as subsidiaries?

a. Mishima only

b. Kawabata only

c. Mishima and Kawabata

d. All three

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... 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...

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