Parent Company holds 80 percent ownership of Subsidiary Company, and Subsidiary Company owns 90 percent of the

Question:

Parent Company holds 80 percent ownership of Subsidiary Company, and Subsidiary Company owns 90 percent of the stock of Tiny Corporation. What effect will $\$ 100,000$ of unrealized intercompany profits on the books of Tiny Corporation on December 31, 20X5, have on the amount of consolidated net income reported for the year?

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