q31 )

P CO owns a 90% interest in S Co, purchased at a time when the book values of S recorded assets and liabilities were equal to fair values. During 2014, P sold merchandise to S cost 40,000 for $32,000 . At December 31, 2014, 75% of this merchandise sold to third party .Separate incomes for P&S are summarized as follows:

P S

Sales 900,000 200,000

Cost of sales 400,000 100,000

Gross profit 500,000 100,000

Operating expenses 200,000 80,000

Separate income 300,000 20,000

What is amount of income from s reported in P income statement ?

Select one:

a. 16,200

b. 19,800

c. 20,000

d. 18,000

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q27)

on 1/1/2019 X CO acquired 80% of Y common stock for $200,000 in the same day the Y net assets was $ 140,000 ,in the same date the fair value of assets and liabilities were equal .year ended 31/12/2019 Y reported income $50,000,declared dividend $30,000,X using cost methods what is investment balance on 31/12/2019

Select one:

a. 150,000

b. 177,000

c. 200,000

d. 166,000

__________________

q24)

On 1/1/2019,X Co purchased a 30% interest in Y Co for $340,000.Y reported net income of $100,000 for 2019 and declared and paid a dividend of $10,000.

X co using the Cost method. In its 31/12/ 2019,balance sheet

what amount should X report as its investment in Y?

Select one:

a. 223,000

b. 277,000

c. 340,000

d. 250,000