36. A parent has a 60% interest in its subsidiary. Ending inventory profits on downstream merchandise sales:

Select one:

a. Increase equity in net income and the noncontrolling interest in net income

b. Only reduce equity in net income

c. Reduce equity in net income and the noncontrolling interest in net income

d. Only increase equity in net income

38. A parent has a 60% interest in its subsidiary. Beginning inventory profits on downstream merchandise sales:

Select one:

a. Increase equity in net income and the noncontrolling interest in net income

b. Only reduce equity in net income

c. Reduce equity in net income and the noncontrolling interest in net income

d. Only increase equity in net income