1. A parent and its 80 percent owned subsidiary have made several intercompany sales of noncurrent assets during the past two years. The amount of income assigned to the noncontrolling interest for the second year should include the noncontrolling interest's share of gains:

A. unrealized in the second year from upstream sales made in the second year.

B. realized in the second year from downstream sales made in both years.

C. realized in the second year from upstream sales made in both years.

D. both realized and unrealized from upstream sales made in the second year.

2. Phobos Company holds 80 percent of Deimos Company's voting shares. During the preparation of consolidated financial statements for 20X9, the following consolidating entry was made:

Investment in Deimos	50,000
Land		50,000

Which of the following statements is correct?

A. Phobos Company purchased land from Deimos Company during 20X9.

B. Phobos Company purchased land from Deimos Company before January 1, 20X9.

C. Deimos Company purchased land from Phobos Company during 20X9.

D. Deimos Company purchased land from Phobos Company before January 1, 20X9.