When Indirect Control Is Present, Which of the Following Statements

Multiple Choice

When indirect control is present, which of the following statements is true?

A) At least one company within the business combination holds a parent and a subsidiary relationship.
B) The parent company owns a percent of subsidiary and subsidiary owns a percent of the parent.
C) Consolidated financial statements are required for only one subsidiary.
D) Recognition of income for an indirectly owned subsidiary is ignored.
E) Only dividend income is recognized for an indirectly owned subsidiary.