1. P owns 100% of S. At Day 1, Year 1, there were no items from intercompany sales in either companys inventory. In Year 1, P sold goods to S for $1,000,000 that cost Small $800,000. P still owned 100,000 (10%) of these goods at December 31, year 1. Cost of goods sold was $6,000,000 for P and $3,000,000 for S. What was consolidated cost of goods sold?

   		$9,000,000.
   		$8,000,000
   		$7,980,000.
   		$8.020,000.

2. This uses the same facts as in the previous question. P owned 90% of S. In Year 1, Parent sold land with a book value of $450,000 to Sub. The selling price was $550,000

   Later, Sub sells the land in Year 3 for $1,000,000 in cash. In Year 3, the gain on sale in consolidated net income should be:

   		$450,000
   		$505,000
   		$550,000
   		$595,000

3. P owned 90% of S. In Year 1, Parent sold land with a book value of $450,000 to Sub. The selling price was $550,000. At what amount should the land be reported in the Year 1 ending balance sheet?

   		$405,000.
   		$450,000
   		$495,000.
   		$550,000.