Solution-Which consolidated net income would be

Which consolidated net income would be

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Reference no: EM132685384

Problem 1: Consolidated Net Income would be:

Multiple Choice

Option 1: higher if the parent chooses to use the Equity Method rather than the Cost Method, provided that the subsidiary showed a profit.

Option 2: lower if the parent chooses to use Equity Method rather than the Cost Method.

Option 3: the same under both the Cost and Equity Methods.

Option 4: higher if the parent chooses to use Equity Method rather than the Cost Method.

Reference no: EM132685384

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Which consolidated net income would be

Reference no: EM132685384

Reference no: EM132685384

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