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.

Question

Quizplus · Accepted Answer

Consolidated Net Income refers to the net income of a parent company and its subsidiaries. To calculate Consolidated Net Income, we take the parent's net income, exclude any income arising from its investment in the subsidiary and add to it the net income of the subsidiary, less the amortization of the acquisition differential and the impairment of goodwill. Therefore, option D is the correct answer.

Consolidated Net Income Is Equal To