Ask Question
8 February, 13:00

Create, Inc., a domestic corporation, owns 100% of Vinyl, Ltd., a foreign corporation and Digital, Inc., a domestic corporation. Create also owns 12% of Record, Inc., a domestic corporation. Create receives no distributions from any of these corporations. Which of these entities' net income is included in Create's income statement for current-year financial reporting purposes?

a. Create, Vinyl, and Digital.

b. Create, Digital, and Record.

c. Create, Vinyl, Digital, and Record.

d. Create, Vinyl, and Record.

+1
Answers (1)
  1. 8 February, 13:27
    0
    c. Create, Vinyl, Digital, and Record

    Explanation:

    The answer is

    c. Create, Vinyl, Digital, and Record

    Since Create Inc. which is a domestic corporation, owns 100% shares in two enterprises. One is Vinyl Ltd. which is a foreign corporation and the other is Digital Inc. which is a domestic corporation. And Create Inc. also happens to own 12% shares in a domestic corporation named Record Inc.

    Now since Create Inc. owns shares in all the three corporations, all these corporations's net income will be included in the Create's income statement current-year financial report.

    Thus the answer is

    c. Create, Vinyl, Digital, and Record
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Create, Inc., a domestic corporation, owns 100% of Vinyl, Ltd., a foreign corporation and Digital, Inc., a domestic corporation. Create ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers