There Are Alternative Ways to Calculate Consolidated Retained Earnings

Multiple Choice

There are alternative ways to calculate consolidated retained earnings. One of the methods requires adjustments to be made to the parent company's separate-entity ending retained earnings balance as of the consolidation date. What adjustments must be made to determine ending consolidated retained earnings?

A) Add in the dividends from the subsidiary to the parent and the parent's share of the subsidiary's adjusted income.
B) Subtract the dividends from the subsidiary to the parent and the parent's share of the subsidiary's adjusted income.
C) Add in the dividends from the subsidiary to the parent and subtract the parent's share of the subsidiary's adjusted income.
D) Subtract the dividends from the subsidiary to the parent and add in the parent's share of the subsidiary's adjusted income.