Answered step by step
Verified Expert Solution
Question
1 Approved Answer
on 27 ed P Corporation acquired an 80% interest in s Corporation on January 1, 2014, when the book values of S assets and liabilities
on 27 ed P Corporation acquired an 80% interest in s Corporation on January 1, 2014, 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 2014, P sold merchandise that cost $86,000 to S for $70,000. On December 31, 2014, one-fourths of the merchandise acquired from P remained in s inventory. Separate incomes investment income not included) of the two companies are as follows: out of question P S Sales Revenue $180,000 $160,000 90,000 Cost of Goods Sold 120,000 Operating Expenses 17 000 Separate incomes $ 43,000 What is P income from Investment in S for 2014 21 000 S 49 000 Select one: a. $43,200 b. SB5 200 c. $39,200 d. $42.400 28 Only the income statement is consolidated on the date of a business combination of a parent company and subsidiary 1 Select one: ut of True False uestion
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started