Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

17. Upstream sales Pid Corporation owns an 80 percent interest in Sed Corporation and at December 31, 2011, Pid's investment in Sed on an

image text in transcribed

17. Upstream sales Pid Corporation owns an 80 percent interest in Sed Corporation and at December 31, 2011, Pid's investment in Sed on an equity basis was equal to 80 percent of Sed's stockholders' equity. During 2012, Sed sells merchandise to Pid for $200,000, at a gross profit to Sed of $40,000. At December 31, 2012, half of this merchandise is included in Pid's inventory. Separate incomes for Pid and Sed for 2012 are summarized as follows: Pid Sed Sales Cost of sales Gross profit Operating expenses $1,000,000 $600,000 (500,000) (400,000) 500,000 (250,000) 200,000 (80,000) Separate incomes $ 250,000 $120,000 Pid's income from Sed for 2012 is: * (2 Points) $96.000 $80,000 $76.000 $56.000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Charles Horngren, William Thomas, Walter Harrison, Greg Berberich, Catherine Seguin

5th Canadian edition

133472264, 978-0133446265, 133446263, 978-0133472264

More Books

Students also viewed these Accounting questions

Question

=+a) What were the factors and factor levels?

Answered: 1 week ago

Question

1. Let a, b R, a Answered: 1 week ago

Answered: 1 week ago