Asked by
Torie Pollard
on Oct 16, 2024
Verified
Consolidated Net Income is equal to:
A) the sum of the net incomes of both the parent and its subsidiaries.
B) the sum of the net incomes of both the parent and its subsidiaries less any inter-company dividends.
C) the parent's net income excluding any income arising from its investment in the subsidiary.
D) the parent's net income excluding any income arising from its investment in the Subsidiary, plus the net income of the subsidiary less the amortization of the acquisition differential and the impairment of goodwill.
Consolidated Net Income
The total profit of a corporation and its subsidiaries after taxes, interest, depreciation, and other expenses have been deducted, reflecting the overall earnings of the conglomerate.
Parent
A company that controls or owns more than half of another company's stock, thereby having control over its subsidiary.
Subsidiary
A company controlled by another company, referred to as the parent company, through ownership of more than half of its voting stock.
- Learn and ascertain the total net income and conserved earnings.
Verified Answer
JP
Learning Objectives
- Learn and ascertain the total net income and conserved earnings.