Multiple Choice.

A parent and its 80 percent-owned subsidiary have made several intercompany sales of noncurrent assets during the past two years. The amount of income assigned to the noncontrolling interest for the second year should include the noncontrolling interest's share of gains:

A. unrealized in the second year from upstream sales made in the second year.

B. realized in the second year from downstream sales made in both years.

C. realized in the second year from upstream sales made in both years.

D. both realized and unrealized from upstream sales made in the second year.