江西财经大学-高级财务会计国际学院题库.docVIP

Advanced Accounting, 11e (Beams/Anthony/Bettinghaus/Smith) Chapter 9 Indirect and Mutual Holdings Multiple Choice Questions 1) 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. Answer: B Objective: LO1 Difficulty: Moderate 2) Page Corporation acquired a 60% inter