36 P Co acquired an 80 interest in S Co on 1 1 2020,when the book values of S assets and liabilities were equal to their fair values The cost of the 80 interest was equal to 80 of the book value of S net assets During 2020,P sold merchandise that cost $70,000 to S for $86,000 On 31 12 2020,three fourths of the merchandise acquired from P remained in S inventory Separate incomes (investment income not included) of the two companies are as follows P S Sales Revenue 180,000 160,000 Cost of Goods Sold 120,000 90,000 Operating Expenses 17,000 21,000 Separate incomes 43,000 49,000 the year ended 31 12 2020 ,the realized income from intercompany sales Select one a $ 12,000 loss b $12,000 profit c $ 4,000 profit d $ 4,000 loss

Question

36 P Co acquired an 80  interest in S Co on 1 1  2020,when the book values of S assets and liabilities were equal to their fair values The cost of the 80  interest was equal to 80  of the book value of S net assets During 2020,P sold merchandise that cost $70,000 to S for $86,000 On 31 12  2020,three fourths of the merchandise acquired from P remained in S inventory Separate incomes (investment income not included) of the two companies are as follows  P S Sales Revenue 180,000 160,000 Cost of Goods Sold 120,000 90,000 Operating Expenses 17,000 21,000 Separate incomes 43,000 49,000 the year ended 31 12 2020 ,the realized income from intercompany sales  Select one  a  $ 12,000 loss b  $12,000 profit c  $ 4,000 profit d  $ 4,000 loss

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36 P Co acquired an 80% interest in S Co on 1/1/ 2020,when the book values of S assets and liabilities were equal to their

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