Seaton Company is a variable interest entity. Pracker Company has no equity ownership in Seaton, but is its primary beneficiary. Pracker and Seaton were not previously under common control. Which statement is true at the date Pracker becomes Seaton's primary beneficiary?
A) Pracker does not consolidate Seaton.
B) There is no consolidated noncontrolling interest.
C) Consolidated noncontrolling interest equals the book value of Seaton's net assets.
D) Consolidated noncontrolling interest equals the fair value of Seaton's net assets.
Correct Answer:
Verified
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