Consolidated net income may include the parent's separate operating income plus the parent's share of the subsidiary's reported net income:

Multiple Choice

• 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.