Consolidation is required when

Question 1 options:

A)	Significant influence exists
B)	Investment represents 50% or more ownership of the investee
C)	Control exists
D)	Significant influence but no control exists

Question 2 (Mandatory) (10 points)

At the beginning of the class, we briefly discussed many types of business combinations. However, from consolidation perspective, the most important classification we need to focus on is

Question 2 options:

A)	How many legal entities remain
B)	Whether the acquisition is through capital stock or asset.
C)	Whether the ownership is 100%
D)	Whether the consideration given is 100% cash

Question 3 (Mandatory) (10 points)

In the case when investee is dissolved after acquisition, the "one big journal entry" I keep mentioning in the lecture needs to record all the following except.

Question 3 options:

A)	"What you acquired in fair value"
B)	"What you paid in fair value"
C)	Goodwill when B>A or Gain on Bargain purchase when A>B
D)	Excess amortization for the first year