Consolidated Net Income for a Parent and Its 80 Percent

question 4

Multiple Choice

Consolidated net income for a parent and its 80 percent owned subsidiary should be computed by eliminating:

• A)all unrealized profit in downstream intercompany inventory sales,and unrealized profit in upstream intercompany inventory sales made during the current year.
• B)all unrealized profit in downstream intercompany inventory sales,and the noncontrolling interest's share of unrealized profit in upstream inventory sales made during the current year.
• C)the controlling interest's share of unrealized profit in downstream intercompany sales,and the controlling interest's share of unrealized profit in upstream sales made during the current year.
• D)all unrealized profit in downstream intercompany sales,and the noncontrolling interest's share of unrealized profit in upstream sales made during the current year.

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Definitions:

Birthrates

The number of live births per thousand people in a population over a specific period of time.

Economic View

A perspective or analysis based on the principles of economics, focusing on how entities make choices to allocate resources.

Fisheries

The industry or activity of catching, processing, and selling fish and seafood.

Resource Problem

Challenges associated with the allocation, use, and sustainability of resources, impacting economic and environmental outcomes.