"A consolidated income statement will show more income than a parent company-only statement when both the parent and subsidiary have positive net income." Do you agree?

A. Yes. Consolidated financial statements include the income from all statements by adding the totals together.

B. Maybe. Consolidated financial statements include elimination entries so it will depend on the inter-company transactions.

C. No. The consolidated statement and the parent-only statement will show the same amount of net income. The difference is in the format of reporting, not in the amount of income that is reported. The parent reports subsidiaries' results using the equity method.

D. None of the above are correct.