A Parent Sold Land to Its Partially Owned Subsidiary During

question 4

Multiple Choice

A parent sold land to its partially owned subsidiary during the year at a loss.The subsidiary 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 intercompany loss.
• B)the parent's separate operating income,plus the intercompany loss,plus the subsidiary's net income.
• C)the parent's separate operating income,minus the intercompany loss.
• D)the parent's separate operating income,minus the intercompany loss,plus the subsidiary's net income.

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Definitions:

Organizational Buying Behavior

The decision-making process and actions involved when organizations purchase products or services for their own use or for resale.

Decision-making Process

The series of steps taken by individuals or businesses to identify and evaluate options before choosing a course of action.

Brands and Suppliers

Refers to the relationship between companies that produce goods (brands) and those that provide the raw materials or components (suppliers).

Reciprocity

A social norm or principle involving mutual exchanges of goods, services, or favors, often used in marketing to enhance customer loyalty.