Consolidated Net Income would be:

A) higher if the parent chooses to use Equity Method rather than the Cost Method.
B) higher if the parent chooses to use the Equity Method rather than the Cost Method, provided that the subsidiary showed a profit.
C) lower if the parent chooses to use Equity Method rather than the Cost Method.
D) the same under both the Cost and Equity Methods.

Equity Method

An accounting technique used by firms to assess the profits earned through their investments in other companies by recognizing their share of the earnings.

Cost Method

An accounting method used to record investments at their original purchase cost.

Consolidated Net Income

Consolidated net income refers to the total earnings of a parent company and its subsidiaries after taxes and expenses, adjusted for minority interests.