Ursula, Inc. is a domestic corporation. It owns 100% of Texas, Inc., a domestic corporation; 100% of Paris, a foreign corporation and 45% of Iowa, Inc., a domestic corporation.
a. Which entities' incomes are included in Ursula's combined GAAP financial statements?
b. How would your answer change if Ursula instead owned 15% of Iowa?

Question

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The Answer of Ursula, Inc. is a domestic corporation. It owns 100% of Texas, Inc., a domestic corporation; 100% of Paris, a foreign corporation and 45% of Iowa, Inc., a domestic corporation.
a. Which entities' incomes are included in Ursula's combined GAAP financial statements?
b. How would your answer change if Ursula instead owned 15% of Iowa?