When Preparing Consolidated Financial Statement Workpapers, Unrealized Intercompany Gains, as a Result

Multiple Choice

When preparing consolidated financial statement workpapers, unrealized intercompany gains, as a result of equipment or inventory sales by affiliates, are allocated proportionately by percent of ownership between parent and subsidiary only when the selling affiliate is:

A) the parent and the subsidiary is less than wholly owned.
B) a wholly owned subsidiary.
C) the subsidiary and the subsidiary is less than wholly owned.
D) the parent of a wholly owned subsidiary.