PInc. owns 85 percent of S Inc. During 20x8, P sold goods with a 25 percent gross profit to S. S 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 percent of the intercompany sales. Sales and cost of goods sold should be reduced by the intercompany sales. Net income should be reduced by 85 percent of the gross profit on intercompany sales. 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 plus the noncontrolling interest's share of gains: O realized in the second year from upstream sales made in both years. both realized and unrealized from upstream sales made in the second year. unrealized in the second year from upstream sales made in the second year. O realized in the second year from downstream sales made in both years