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advance accounting P investement in S64% S equity at acquesition consist of 300000 common stock and 100000 retained earning inventory understaed 20000 of which 80%
advance accounting
P investement in S64% S equity at acquesition consist of 300000 common stock and 100000 retained earning inventory understaed 20000 of which 80% sold in y1 and 15% sold in y2 note payable overstated 9000 and 3 years to maturity note receivable overstated 6000 and 24 months remaining to mature S net income for year 1 was 60000 and S net income for year 2 was 70000 S dividends in year 1=15000 in year 2 the same sales from P to S year1 of product A 1000@18 cost to P 14 and S sold to external @22 in y1 600 and 300 y2 sales from S to P year1 of product B 900@17 cost to S 15 and P sold to external @20 in y1 700 and 150 y2 sales from P to S year2 product C 500@20 cost to P 17 and S sold 150 units to external @25 sales from S to P year2 product D 400@18 cost to S 12 and P sold 150 units to external @20Step by Step Solution
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