Which of the following is not a factor that indicates a business enterprise that establishes a variable interest entity (VIE) should consolidate such VIE with its own financial statements?
A. The business enterprise establishing a VIE has the obligation to absorb potentially significant losses of the VIE.
B. The business enterprise establishing a VIE has power through voting rights to direct the entity's activities that significantly impact economic performance.
C. The business enterprise establishing a VIE has the right to receive potentially significant benefits of the VIE.
D. The business enterprise establishing a VIE receives risks and rewards of the VIE in proportion to equity ownership.
E. The business enterprise establishing a VIE is a primary beneficiary for the VIE.
Answer: D
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A) 10,500 units B) 7,500 units C) 30,000 units D) 15,000 units
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Answer the following statement true (T) or false (F)