On Jan 1st, 2020, P Company acquired 80% of Scompany's outstanding common stocks by issuing 40000 new shares. The par value, per share, was JD 5 and the fair value was JD 20. Also, P paid JD200000 in cash. P Company incurred another JD 15000 accounting and legal fees, and JD 5000 securities issuance cost. On Jan 1, 2020, the balance sheet of Scompany appeared as below: S Book values Fair values Cash 300000 300000 50000 50000 Accounts receivables 200000 210000 Inventory 250000 300000 Equipment 500000 540000 Lands 1300000 1400000 Total assets 200000 200000 Accounts payable 01-12 Total assets 1300000 1400000 Accounts payable 200000 200000 Capital - C.S 600000 Other contributed capital 300000 Retained earnings 200000 Total liabilities & equities 1300000 Notes: - S Company had a net income of JD 50000 at the end of year 2020, and it declared cash dividends JD 10000 S company sold all of its 1/1/2020 inventory - The remaining productive life of S company's equipment is 10 years - S Company sold merchandise to P Company during the year at a price of JD 20000. By the end of the year, P Company had JD 9000 of this merchandise in its ending inventory with an unrealized profit of JD 2000 The work-paper entry that is necessary to eliminate the unrealized inter-company profit (resulted from merchandise sales) when preparing the consolidated financial statements on December 31, 2020 is: Select one: O Sales 20000 Cost of goods sold 20000 Inventory (I.S) 1600 Inventory (B.S) 1600 Sales 9000 Cost of goods sold 9000 Inventory (I.S) 2000 Inventory (B.S) 2000 The work - paper entry of "Difference Allocation" that is necessary to prepare the consolidated financial statements on December 31, 2020 includes: Select one: O Dr. inventory 10000 O Dr. cost of goods sold 8000 O Dr. cost of goods sold 10000 Dr. inventory 8000 Assuming P used the complete equity method, the entry to record P's share in Sincome is: Select one: Equity in S Income 40000 Investment 40000 O Investment 40000 Equity in Sincome 40000 O No entries O Investment 50000 Equity in Sincome 50000 On Dec. 31, 2020, consolidated sales revenues were JD 600000, COGS of P Company was 150000, COGS of S Company was 280000. consolidated gross profit will be: Select one: 180000 O 178000 160000 0 170000 Assume that P company had a zero (0) balance of other contributed capital before the acquisition, The balance of "other contributed capital" on the consolidated balance sheet immediately after the acquisition should be: Select one: O 600000 900000 895000 595000 Assuming Pused the complete equity method, the entry to record P's share of the additional depreciation and cost of goods sold (to adjust its equity in Sincome account) is: Select one: O Investment 12000 Equity in Sincome 12000 O Equity in Sincome 12000 Investment 12000 Equity in Sincome 15000 Investment 15000 No entries