A Wholly Owned Subsidiary Sold Land to Its Parent During

question 3

Multiple Choice

A wholly owned subsidiary sold land to its parent during the year at a gain.The parent continues to hold the land at the end of the year.The amount to be reported as consolidated net income for the year should equal:

• A)the parent's separate operating income,plus the subsidiary's net income.
• B)the parent's separate operating income,plus the subsidiary's net income,minus the intercompany gain.
• C)the parent's separate operating income,plus the subsidiary's net income,plus the intercompany gain.
• D)the parent's net income,plus the subsidiary's net income,minus the intercompany gain.

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Definitions:

Rollback Value

A term not typically used in standard statistical or mathematical language; likely specific to certain decision analysis contexts. NO.

FDA Approval

The official authorization granted by the U.S. Food and Drug Administration for the sale and distribution of a pharmaceutical or food product as safe and effective for specified uses.

Portfolio Risk

The risk associated with holding a portfolio of investments, reflecting the variability of the total returns compared to the expected return.

Two-Asset Portfolio

A financial investment portfolio comprising only two types of assets, aiming to diversify risk and enhance returns.