Answer:
b. the profit realized this year from upstream intercompany sales of inventory made last year
Explanation:
Consolidated net income can be defined as the amount of the net income of the parent company and it has well exclude any of the income from the subsidiaries that was recognized in its individual financial statements in addition with the net income of its subsidiaries that was determined after excluding unrealized gain in inventories as well as the income from the intra-group transactions which is why CONSOLIDATED NET INCOME is often reported on the consolidated income statement for periods after the acquisition has occured.
Therefore CONSOLIDATED NET INCOME may tend to include the parent's separate operating income in addition with the parent's share of the subsidiary's reported net income plus/ minus the profit that was realized this year from the upstream intercompany sales of the inventory that was made last year
