Question: A Inc, has 1 5 % interest in E Inc. E acquires almost all the raw material it needs from A Inc.A Inc. provides very

A Inc, has

15 %

interest in E Inc. E acquires almost all the raw material it needs from A Inc.A Inc. provides very favourable payment terms to E Inc

(

usually a payment term of

9

months,

2 %

interest

) .

Both A & E sell similar products so A

'

s VP of Sales offers his services to E inc. for $

70, 000

a year.Select one of the following options that relate to this situation Non

-

strategic investment, FVPL or FVOCISpecial Purpose Entity, ConsolidateDeemed Control, ConsolidateJoint Venture, Equity method.Control, Consolidate.Significant influence, Equity method

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