When comparing the difference between an upstream and downstream transfer of inventory, and using the initial value method, which of the following statements is true when there is a non-controlling interest?
A) Income from subsidiary will be lower by the amount of the beginning inventory profits multiplied by the non-controlling interest percentage for upstream transfers.
B) Income from subsidiary will be higher by the amount of the beginning inventory profits multiplied by the non-controlling interest percentage for upstream transfers.
C) Income from subsidiary will be reduced for downstream ending inventory profits but not for upstream profits, before the non-controlling interest.
D) Income from subsidiary will be reduced for upstream ending inventory profits but not for downstream profits, before the non-controlling interest.
E) Income from subsidiary will be the same for upstream and downstream profits.
Correct Answer:
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