Parents co sold land to its subsidiary which cost $15,000 for10,000,during 2019 subsidiary resold the land for 20,000 to third party in 2020 .the realized income reported in 2019 will be?

Select one:

a. 0

b. 10,000 loss

c. 5,000 loss

d. 5,000 profit

P Co acquired an 80% interest in S Co on1/1/2014, 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 $70,000 to S for $86,000. On 31/12/2014, three-fourths of the merchandise acquired from P remained in S inventory. Separate incomes (investment income not included) of the two companies are as follows:

P S

Sales Revenue $180,000 $160,000

Cost of Goods Sold 120,000 90,000

Operating Expenses 17,000 21,000

Separate incomes $ 43,000 $ 49,000

The consolidated income statement for P Corporation and subsidiary for the year ended 31/12/2014 will show consolidated cost of sales of

Select one:

a. $ 120,000

b. $210,000

c. $136,000

d. $148,000