Which of the Following Adjustments Is Not a Cumulative Operations

Which of the following adjustments is not a cumulative operations adjustment in the consolidation process?

A) Recognize the NCI's share of the subsidiary's retained earnings from the acquisition date to the beginning of the year of the consolidated financial statements.
B) Eliminate the gains and losses from intercompany transactions that have not been realized at the beginning of the year of the consolidated financial statements.
C) Eliminate the flow-through to retained earnings of fair-valued assets and liabilities on intercompany transactions that have since been sold to external parties.
D) Recognize the NCI in earnings.

Correct Answer:

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