A Parent Company Regularly Sells Merchandise to Its 70%-Owned Subsidiary

Multiple Choice

A parent company regularly sells merchandise to its 70%-owned subsidiary.Which of the following statements describes the computation of noncontrolling interest share?

A) The subsidiary's net income times 30%
B) (The subsidiary's net income × 30%) + unrealized profits in the beginning inventory - unrealized profits in the ending inventory
C) (The subsidiary's net income + unrealized profits in the beginning inventory - unrealized profits in the ending inventory) × 30%
D) (The subsidiary's net income + unrealized profits in the ending inventory - unrealized profits in the beginning inventory) × 30%