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Which of the Following Statements Is Correct

Question 17

Multiple Choice

Which of the following statements is correct?


A) Under the Cost Method,Consolidated Net Income is equal to the sum of the income of the parent and it's pro rata share of the net incomes of each of its subsidiaries.
B) Under the Cost Method,Consolidated Net Income is equal to the sum of the income of the parent and the total of the net incomes of each of its subsidiaries.
C) Under the Equity Method,Consolidated Net Income is equal to the sum of the income of the parent and it's pro rata share of the net incomes of each of its subsidiaries.
D) Consolidated Net Income should be equal to the Investor's total income when the Equity method is used.

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