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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