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6 May 2018
4. Zee Company buys 60percent of the voting stock of Bee Company with theremaining<?xml:namespace prefix = o ns ="urn:schemas-microsoft-com:office:office" />
40 percent noncontrollinginterest held by Bee%u2019s former owners, who negotiated thefollowing
minorityrights:
%u2022 Any new debt above$1,000,000 must be approved by the 40 percentnoncontrolling
shareholders.
%u2022 Any dividends orother cash distributions to owners in excess of customaryhistorical
amounts must be approvedby the 40 percent noncontrolling shareholders.
According to the FASB ASC,what are the issues in determining whether Zee shouldconsolidate
Bee or report itsinvestment in Bee under the equity method?
Type your question here
4. Zee Company buys 60percent of the voting stock of Bee Company with theremaining<?xml:namespace prefix = o ns ="urn:schemas-microsoft-com:office:office" />
40 percent noncontrollinginterest held by Bee%u2019s former owners, who negotiated thefollowing
minorityrights:
%u2022 Any new debt above$1,000,000 must be approved by the 40 percentnoncontrolling
shareholders.
%u2022 Any dividends orother cash distributions to owners in excess of customaryhistorical
amounts must be approvedby the 40 percent noncontrolling shareholders.
According to the FASB ASC,what are the issues in determining whether Zee shouldconsolidate
Bee or report itsinvestment in Bee under the equity method?
Type your question here
Deanna HettingerLv2
8 May 2018
