Parent Company owns 90% of the outstanding stock of Sub Company. At the end of the year,

Question:

Parent Company owns 90% of the outstanding stock of Sub Company. At the end of the year, Sub reports revenues of $240,000 and expenses of $170,000. What will Parent report on its own financial statements as “Income from Sub”? On the consolidated financial statements, how much of Sub’s revenues and expenses will be reported?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...