Berlin, Inc

Multiple Choice

Berlin, Inc. holds 100 percent of the common stock of Sea Company, an investment acquired for $520,000. Immediately following the combination, Berlin's net assets have a book value of $900,000 and a fair value of $1,050,000. The book and fair value of Sea's net assets on the date of combination are $350,000 and $425,000, respectively. Immediately following the combination, a consolidated balance sheet is prepared.
-When a parent company uses the equity method to account for investments,the controlling interest in consolidated net income includes all of the following except:

A) The parent's income from its own operations.
B) The parent company's share of income from consolidated subsidiaries.
C) The non-controlling interest's share of income from consolidated subsidiaries.
D) Differential adjustments