summarizes the results of the basic operating activities of a company C) et profit D) Operating income 7) Colorado Company has 40,000 shares of its common stock outstanding. Denver Company owns 15.000 shares of Colorado Company's stock. Which of the following methods should Denver Company use to account for its investment in Colorado Company? A) market value B) equity C) consolidated D) available for sale 8) On January 1, 2014, a parent company purchased 90 percent of the stock in a subsidiary. On January 1, 2010, no goodwill was recorded and the book value of the subsidiary's assets equals the market value of the subsidiary's assets. On December 31, 2014, the two companies report the following data: Parent Company Net Income for Past Year $100 million Subsidiary Company Net Income for Past Year $50 million What is the consolidated net income for the year ended December 31, 2014? A) S100 million B) $135 million C) $145 million D) $150 million