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Bud Ltd Owns 100% of Calla Co

Question 28

Multiple Choice

Bud Ltd. owns 100% of Calla Co. Calla owns 55% of Daisy Ltd., and Daisy owns 90% of Fern Ltd. Which of the following statements is true?


A) Only Bud has to prepare consolidated financial statements.
B) Only Bud and Calla have to prepare consolidated financial statements.
C) Only Bud and Daisy have to prepare consolidated financial statements.
D) Bud, Calla, Daisy, and Fern have to prepare non-consolidated financial statements.

Correct Answer:

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