1 -- On consolidated financial statements, where does the parent's equity in the net income of the subsidiary account appear? A - On the consolidated income statement, as a deduction from income. B - On the consolidated income statement, as a revenue. C - On the consolidated balance sheet, as an equity. D - Doesn't appear on the consolidated financial statements. 2 -- A parent acquired all of the stock of a subsidiary. The subsidiary had originally issued long-term debt when the market rate of interest was 5%. The market rate if interest for the debt at the date of acquisition is 3%. How does the change in market interest rates affect the consolidated financial statements? A - Goodwill is lower B - Acquired long-term debt is valued at a lower amount C - Future interest expense is lower D - There is no effect on the consolidated account balances