Question 21 Not yet ansvered Marked out of 1.50 Flag question PCO 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 10,000 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 400,000 100.000 500,000 100,000 Gross profit 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. 18,000 d 20,000 Question 22 Not vet anistered Marked out of 1.50 Flag question In the equity method of acquisition income is recognized only when the subsidiary dedares dividends Select one: True O False