Pallet Corporation Owns 80% of Adelt Corporation and Adelt Owns

question 8

Multiple Choice

Pallet Corporation owns 80% of Adelt Corporation and Adelt owns 60% of Bajo Inc.Which of the following is correct?

• A)Bajo should not be consolidated because noncontrolling interests hold 52%.
• B)Bajo should be consolidated because the 60% of Bajo stock is held in the affiliate structure.
• C)Pallet has 8% indirect ownership of Bajo.
• D)Pallet has 80% indirect ownership of Bajo.

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Definitions:

Ejaculation

The release of semen from the male reproductive system during sexual arousal.

Smooth Muscle

A type of muscle found in the walls of hollow organs, such as blood vessels and the digestive tract, that contracts involuntarily.

Urethra

The duct through which urine is discharged from the bladder to the outside of the body in both males and females and through which semen is discharged in males.

Skeletal Muscle

A type of muscle tissue that is attached to bones and is responsible for voluntary movements of the body.