On January 1, 2017, P Company acquired 90 interest in the outstanding shares of R Company for $ 2,565,000 On that date, R Company's equity consisted of $ 2,000,000 Common Stock and $ 800,000 Retained Earning The difference between implied value and book value is allocated to goodwill P and R Company are both trading companies The information that occurs between P and R Company is as follows In 2019, P Company sold land to R Company for a gain of $ 120,000 On January 1, 2020, R Company sold the vehicle to P Company for $ 1,300,000, of which the vehicle was purchased by R Company on January 1, 2016, at a cost of $ 1,600,000 which was estimated to have an economic life of 8 years P Company depreciated the vehicles purchased from R Company using the straight line method over their remaining life On December 31, 2021, P Company sold the vehicles purchased from R Company to outside parties for a gain of $ 40,000 In 2021, R Company sells merchandise to P Company for $ 400,000 The cost of the merchandise to R Company was $ 350,000 As of December 31, 2021, the trade goods are still owned by P Company as much as 20 Retained Earning R Company as of December 31, 2020, amounting to $ 1,050,000 P and R Company's trial balance as of December 31, 2021 (in $) is as follows P Company R Company Dr Cr Dr Cr Cash 762 000 140 000 Accounts Receivable 744 000 203 000 Inventories 420 000 290 000 Other Current Assets 348 000 280 000 Investment in R Company Land 3,600 000 1,250 000 Building 6 400 000 Accumulated Depreciation Building 2,560,000 Vehicle 5 850 000 3,680 000 Accummulated Depreciation Vehicle 2,340,000 1 840,000 Accounts Payable 397,000 179,000 Other Liabilities 1,013,000 724,000 Common Stock 12,000,000 2,000,000 Retained Earnings 2,435,000 1,050,000 Devidend Declared 190 000 50,000 Sales 5,723,000 3 296,000 Equity in Subsidiary Income Gain on Sale of Vehicle 40 000 COGS 3 435 000 1,980 000 Depreciation Expense 990 000 920 000 Other Expenses 1,360 000 296 000 Total

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On January 1, 2017, P Company acquired 90% interest in the outstanding shares of R Company for $ 2,565,000. On that date, R Company's equity

On January 1, 2017, P Company acquired 90% interest in the outstanding shares of R Company for $ 2,565,000. On that date, R Company's equity consisted of $ 2,000,000 Common Stock and $ 800,000 Retained Earning. The difference between implied value and book value is allocated to goodwill. P and R Company are both trading companies.

The information that occurs between P and R Company is as follows:

In 2019, P Company sold land to R Company for a gain of $ 120,000.
On January 1, 2020, R Company sold the vehicle to P Company for $ 1,300,000, of which the vehicle was purchased by R Company on January 1, 2016, at a cost of $ 1,600,000 which was estimated to have an economic life of 8 years. P Company depreciated the vehicles purchased from R Company using the straight-line method over their remaining life. On December 31, 2021, P Company sold the vehicles purchased from R Company to outside parties for a gain of $ 40,000.
In 2021, R Company sells merchandise to P Company for $ 400,000. The cost of the merchandise to R Company was $ 350,000. As of December 31, 2021, the trade goods are still owned by P Company as much as 20%.
Retained Earning R Company as of December 31, 2020, amounting to $ 1,050,000.

P and R Company's trial balance as of December 31, 2021 (in $) is as follows:

P Company R Company Dr Cr Dr Cr Cash 762.000 140.000 Accounts Receivable 744.000 203.000 Inventories 420.000 290.000 Other Current Assets 348.000 280.000 Investment in R. Company Land 3,600.000 1,250.000 Building 6.400.000 -- Accumulated Depreciation Building 2,560,000 -- Vehicle 5.850.000 3,680.000 Accummulated Depreciation Vehicle 2,340,000 1.840,000 Accounts Payable -- 397,000 -- 179,000 Other Liabilities -- 1,013,000 -- 724,000 Common Stock -- 12,000,000 -- 2,000,000 Retained Earnings 2,435,000 -- 1,050,000 Devidend Declared 190.000 -- 50,000 Sales -- 5,723,000 -- 3.296,000 Equity in Subsidiary Income -- Gain on Sale of Vehicle -- 40.000 -- COGS 3.435.000 -- 1,980.000 -- Depreciation Expense 990.000 -- 920.000 -- Other Expenses 1,360.000 296.000 Total