Question: When the parent applies the equity method and routinely transfers inventory downstream to its 80% owned subsidiary, any intra-entity gross profits remaining in the consolidated

When the parent applies the equity method and routinely transfers inventory downstream to its 80% owned subsidiary, any intra-entity gross profits remaining in the consolidated entity's ending inventory,Multiple choice question.are allocated 80% to the parent company's share of consolidated net income.are allocated 20% to the parent company's share of consolidated net income.are allocated 100% to the parent company's share of consolidated net income.are not allocated to the parent company's share of consolidated net income.

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