Consolidated Net Income May Include the Parent's Separate Operating Income

question 9

Multiple Choice

Consolidated net income may include the parent's separate operating income plus the parent's share of the subsidiary's reported net income:

• A)plus the unrealized profit on upstream intercompany sales of inventory made during the current year.
• B)plus the profit realized this year from upstream intercompany sales of inventory made last year.
• C)plus unrealized profit on downstream intercompany sales of inventory made during the current year.
• D)minus the parent's share of profit realized this year from upstream intercompany sales of inventory made last year.