Alpha Co. acquires 85% of the outstanding shares of Rama Co. and Mazda Co. owns the remaining of 15% of Rama's outstanding shares. On the consolidated financial statements Mazda is: a. a noncontrolling interest. b. an equity investee. O c. subsidiary O d. an affiliate.

Alpha Co. acquires 85% of the outstanding shares of Rama Co. and Mazda Co. owns the remaining of 15% of Rama's outstanding shares. On the consolidated financial statements Mazda is: a. a noncontrolling interest. b. an equity investee. O c. subsidiary O d. an affiliate.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Alpha Co. acquires 85% of the outstanding
shares of Rama Co. and Mazda Co. owns the
remaining of 15% of Rama's outstanding
shares. On the consolidated financial
statements Mazda is:
a noncontrolling interest.
O b. an equity investee.
O c. subsidiary
O d. an affiliate.

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