When the Parent uses the cost method to account for the investment in the subsidiary, what entries are made on the Parent$$s books to eliminate the unrealized profit in ending inventory from a downstream sale of merchandise? The parent should decrease

Multiple Choice

its portion of the equity in the Subsidiary$$s net income and ending inventory.

its investment in the Subsidiary and its portion of the equity in the Subsidiary$$s net income.

its sales and cost of goods sold.

nothing.