(a) A consolidated income statement will show higher net profit than the parent-company-only income statement when both the parent and subsidiary have disclosed net profits in their respective income statements. Do you agree? Why?
(b) Goodwill is the excess of purchase price over the book values of the individual assets acquired. Do you agree? Why?
(c) What is a minority interest? Why do minority interests arise in connection with consolidated financial statements, but not with investments in associated companies?