A Parent company owns an 80% controlling interest in the voting common stock of its Subsidiary. The subsidiary also has outstanding 10,000 shares of 4% cumulative preferred stock outstanding with par value equal to $1,000,000.

If the parent company owns 100% of the preferred stock, how should the preferred stock be accounted for in the consolidated financial statements?

A. 80% of the preferred stock equity account is eliminated against investment in Subsidiary account on the parent's balance sheet.

B. 20% of the preferred stock equity account is assigned to the noncontrolling interests.

C. 100% of the preferred stock equity account is eliminated against investment in subsidiary account on the parent's balance sheet.

D. All of the preferred stock equity account is assigned to the non controlling interests.