Create, Inc

question 106

Multiple Choice

Create, Inc., a domestic corporation, owns 100% of Vinyl, Ltd., a foreign corporation and Digital, Inc., a domestic corporation. Create also owns 12% of Record, Inc., a domestic corporation. Create receives no distributions from any of these corporations. Which of these entities' net income is included in Create's income statement for current- year financial reporting purposes?

• A) Create, Vinyl, and Digital.
• B) Create, Vinyl, and Record.
• C) Create, Digital, and Record.
• D) Create, Vinyl, Digital, and Record.