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APRILIA CANADA., a corporation, was formed in 1985 to design and develop a motorcycle. APRILIA CANADA. is 55 percent owned by Piaggio Group (Motorcycle Racing company) and 45 percent owned by Noale (an electric motorcycle technology). The decision-making authority of APRILIA CANADA. is equally shared between the Piaggio Group and Noale: the APRILIA CANADA. board of directors is composed of three members appointed by Piaggio Group and three members appointed by Noale.
Required:
Problem 1) Is APRILIA CANADA a Special Purpose Entity (SPE)? Please explain why or why not.
Problem 2) Identify the consolidating entity of APRILIA CANADA? if any. And why?
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