Question 1 when a parent company regularly sells merchandise to its 70%owned sub

Question

Question 1 when a parent company regularly sells merchandise to its 70%owned subsidiary, which of the following staten ents describes the con tation of oncontroli terest ancome the subsidiarys net income times 209 20 %. ??. ehe subsidiarys net income+ unrealized profits in the beginning inventory-unrealized profits n the endng inventory, C. the subsidiary s net income times 30%. @ D.the subsidiary's net income x30) - unrealized profits in the beginning inventory-unealized profits in the ending inventory

Explanation / Answer

Answer - ( C ) The subsidiary's net income times 30%

Because parent company has rights on only 70% of net income of subsidiary but rest 30% of income belongs to subsidiary company itself.

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