year. b Use the following to answer questions 13-19: During 2001, Montana Corp., a 90-percent-owned subsidiary, sold inventory to its parent for $700,000; the inventory originally had cost Montana $500,000. By the end of 2001, only one- fourth of the inventory had been resold to unrelated parties. For 2001, the two companies reported the following: 2001 Operating income of parent company $ 900,000 2001 Net income of Montana Corp. 500,000 Total $1,400,000 16. Consider the information given above. What adjustment with respect to cost of goods sold should appear in the 2001 consolidation workpaper as a result of the intercompany sale? A) $500,000 credit B $450,000 credit C) $150,000 debit D) $550,000 credit d 17. Based on the information given above, the parent's share of 2001 consolidated net income should be: A) A $1,400,000 B) $1,350,000. C) $1,250,000. D) $1,215,000. d 18. Consider the information given above. How would the parent's share of 2001 consolidated net income be different if the intercompany sale had been downstream? A) $15,000 less B) $15,000 more C) $20,000 more D) $20,000 less . 19. Based on the information given above, the income assigned to the noncontrolling interest for 2001, following the upstream sale of inventory, is: A) $140,000. B) $ 50,000. C) $ 35,000. D) $ 30,000