Question

Teal Corporation 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 balance sheet. Teal reported total assets of $190,000 (including its investment in the VIE), liabilities of $80,000, common stock of $15,000, and retained earnings of $95,000 in its balance sheet.

Required
Prepare a consolidated balance sheet in good form for Teal, taking into consideration that it is the primary beneficiary of the variable interest entity.



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  • CreatedMay 23, 2014
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