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  3. martha smith owns a 40% interest in omega corporat

Martha Smith owns a 40% interest in Omega Corporation, a variable interest entity. Martha's employer,...

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Accounting

image Martha Smith owns a 40% interest in Omega Corporation, a variable interest entity. Martha's employer, Zeta Corporation, provided financing for 10% of Martha's investment. When determining if Zeta Corporation, a single decision maker, is the primary beneficiary of a VIE, the company would include direct variable interests and indirect variable interests on a proportional basis. As a result of Martha's investment, Zeta Corporation's indirect interest in the VIE held by financing would be equal to a 4% direct interest. Select one: True False

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