Consolidated net income for a parent and its 8o percent owned subsidiary should be computed by eliminating: all unrealized profit in downstream intercompany inventory sales and made during unrealized profit in upstream intercompany inventory sales made during the current year. All unrealized profit in downstream intercompany inventory sales, and the non controlling interest's share of unrealized profit in upstream inventory sales made during the current year. The controlling interest's share of unrealized profit intercompany sales, and the controlling interest's share in unrealized profit in upstream sales made during the current year all unrealized profit in downstream intercompany sales and the non controlling interest's share of unrealized profit in upstream sales made during the current year. 23. Senior Inc. owns 85 percent of Junior Inc. During 20X8, Senior sold goods with a 25 percent gross profit to Junior. Junior sold all of these goods in 20X8. How should 20x8 consolidated income statement items be adjusted? No adjustment is necessary. Sales and cost of goods sold should be reduced by 85 intercompany sales. Net income should be reduced by 85 percent of the gross intercompany sales. Sales and cost of goods sold should be reduced by the ales intercompany sales. Consolidated net income may include the parent's separate operating income plus the parent's share of the subsidiary's reported net income: plus the unrealized profit on upstream intercompany sales of inventory made during the current year. plus the profit realized this year from upstream intercompany sales of inventory made last year. plus unrealized profit on downstream intercompany sales of inventory made during the current year. minus the parent's share of profit realized this year from upstream intercompany sales of inventory made last year