In Years Subsequent to the Year a 90% Owned Subsidiary

Multiple Choice

In years subsequent to the year a 90% owned subsidiary sells equipment to its parent company at a gain, the noncontrolling interest in consolidated income is computed by multiplying the noncontrolling interest percentage by the subsidiary's reported net income:

A) minus the net amount of unrealized gain on the intercompany sale.
B) plus the net amount of unrealized gain on the intercompany sale.
C) minus intercompany gain considered realized in the current period.
D) plus intercompany gain considered realized in the current period.