When preparing a consolidated income statement,

Question

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When preparing a consolidated income statement, all revenue and expense transactions between the parent and subsidiaries must be eliminated. This is to avoid double-counting or overstating the income and expenses of the group. The income from partially owned subsidiaries should also be included in the consolidated income statement, and intercompany transactions between affiliated companies must be eliminated. Therefore, option A and B are incorrect, and option D is not accurate.

When Preparing a Consolidated Income Statement