Consolidated Net Income for a Parent and Its 80 Percent

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.