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:

Labor-force Participation Rate

The proportion of the working-age population that is either employed or actively looking for work.

Labor Force

The total number of people aged 16 and over who are either employed or actively seeking employment.

Employed Category

A classification used in labor statistics to describe individuals who are currently employed and working.

Unemployed Category

A classification of individuals who are without a job, actively seeking work, and available to take up employment but are unable to find a job.