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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