Fighting Back, a Not-For-Profit Organization, Has a 51% Economic Interest

Multiple Choice

Fighting Back, a not-for-profit organization, has a 51% economic interest in Clothing Care, another not-for-profit organization. The organizations operate independently, have no directors in common, and have no transactions with each other. For financial reporting purposes, how should Fighting Back account for its interest in Clothing Care?

A) Note disclosure only.
B) Consolidation.
C) The equity method.
D) Either consolidation or note disclosure