The consolidated net income equals the parent's net income only if the parent accounts for its investment in the subsidiary using the cost method.

Name: The consolidated net income equals the parent's net income only if the parent accounts for its investment in the subsidiary using the cost method.
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Question

Quizplus · Accepted Answer

Consolidated net income includes the parent's net income and its share of the subsidiary's net income, adjusted for intercompany transactions, regardless of the accounting method used for the investment.

The Consolidated Net Income Equals the Parent's Net Income Only