Saratoga Corporation owns significant amounts of the common stock in three Japanese corporations. The following table describes
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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. 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 StockCommon 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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Related Book For
International Accounting
ISBN: 978-1260466539
5th edition
Authors: Timothy Doupnik, Mark Finn, Giorgio Gotti, Hector Perera
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