Peters Inc

Peters Inc. consolidates a variable interest entity even though it owns none of the entity's equity. The appropriate values of the VIE's assets exceed those of its liabilities. The difference between the VIE's assets and liabilities is reported on Peters' balance sheet:

A) In equity, as "noncontrolling interest"
B) In equity, as an increase in retained earnings
C) As a noncurrent liability
D) As a contra to the investment account reported in Peters' assets