A parents beginning inventory contains unconfirmed profits on goods purchased from its subsidiary of $75,000....
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Accounting
A parents beginning inventory contains unconfirmed profits on goods purchased from its subsidiary of $75,000. The subsidiary's beginning inventory contains unconfirmed profits on goods purchased from its parent of $120,000. The parent owns 80% of the subsidiary. What is the effect on consolidated net income and the noncontrolling interest in net income?
A. Consolidated net income increases $156,000; noncontrolling interest in net income increases $39,000.
B. Consolidated net income increases $120,000; noncontrolling interest in net income decreases $15,000.
C. Consolidated net income increases $195,000; noncontrolling interest in net income increases $15,000.
D. Consolidated net income increases $195,000; noncontrolling interest in net income increases $39,000.
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