When the parent applies the equity method and routinely transfers inventory downstream, which of the following consolidation entries are sometimes needed to bring the Investment In Subsidiary account to a zero balance?

Which of the following consolidation entries has the net effect of increasing the current period's consolidation net income.

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() for the equity in subsidiary earnings recognized by the parent. (&"G) for intra-entity gross profits in beginning inventory. (G) for intra-entity gross profits in ending inventory. (D) for the parent's share of subsidiary dividends declared. () for the equity in subsidiary earnings recognized by the parent. (&"G) for intra-entity gross profits in beginning inventory. (G) for intra-entity gross profits in ending inventory. (D) for the parent's share of subsidiary dividends declared.

Answer rating: 100% (QA)

ANSWER D for the parents share of subsidiary dividends declared G for intraentity gross profits in b... View the full answer