An Investing Firm Consolidates the Variable Interest Entity If It

question 29

Short Answer

An investing firm consolidates the variable interest entity if it absorbs the majority of the entity's expected ____________________ if they occur,receives a majority of the entity's expected ______________________________ if they occur,or both.

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Definitions:

Dependent

A person, typically a child or family member, who relies on the taxpayer for financial support and can be claimed for tax deductions or credits.

Wages

Compensation for labor or services paid by an employer to an employee.

Failure to Pay

A situation where an individual or corporation does not meet the due date for payment of taxes owed, potentially resulting in penalties.

Automatic Extension

An allowance by the IRS that gives taxpayers an additional period to file their tax returns without penalty.