In the preparation of a consolidated income statement:

Multiple Choice

a. Income assigned to noncontrolling shareholders in the current period is likely to be less than a pro rata portion of the reported net income of the subsidiary in the current period if the subsidiary had an unrealized gain on an intercompany sale of depreciable assets in the preceding period. Assume the depreciable asset was subsequently sold in the current period.

b. Income assigned to noncontrolling shareholders in the current period is likely to be more than a pro rata portion of the reported net income of the subsidiary in the current period if the subsidiary had an unrealized gain on an intercompany sale of depreciable assets in the preceding period. Assume the depreciable asset was subsequently sold in the current period.

c. Income assigned to noncontrolling shareholders always is computed as a pro rata portion of the reported net income of the subsidiary.

d. Income assigned to noncontrolling shareholders always is computed as a pro rata portion of the reported net income of the consolidated entity.