Assume that Big Company has 90% ownership of Small Company and applies the equity method to account for its invesment in Small.Big Company has $60,000 of liabilities and Small company has liabilities of $20,000. Which of the following is a true statement about the consolidated financial statements of Big and Small?

Select one:

a.Big's reported income will be equal to Consolidated Net Income.

b.Big's total assets will be equal to Small's total assets.

c.Big's Retained Earnings will be equal to Consolidated Retained Earnings.

d.a and b

e.None of the Above