Which of the following statements regarding consolidation of a VIE with its primary beneficiary is...
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Accounting
Which of the following statements regarding consolidation of a VIE with its primary beneficiary is true? A) The consolidation of a VIE with its primary beneficiary requires the business enterprise to follow a separate process than the one required for consolidations based on voting interests. B) All intra-entity transactions between the primary beneficiary and the VIE are included in the consolidation. C) Only intra-entity transactions between the primary beneficiary and the VIE resulting from intra-entity transfers are eliminated in the consolidation. D) VIEs with controlling interests must include one hundred percent of the primary beneficiarys net income in a consolidation. E) The allocation of the VIEs net income is based on an analysis of the underlying contractual arrangements between the primary beneficiary and other holders of variable interests.
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