Question $7$

$3$ pts

If there is a downstream sale of inventory from the parent to the subsidiary what is the effect on the non$-$controlling interest?

A pro rata portion of deferred gain or loss is recognized in the income statement

Any resulting gain or loss is reported $($in totall$)$ in the current period income statement

Any cash received is reported in Accumulated Other Comprehensive Income

There is no impact on the nort controlling interest of a subsidiary