Question 33 Not yet answered P Corporation acquired an 80% interest in s Corporation on January 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 December 31, 2014, all of the merchandise acquired from P Sold to third party. Separate incomes (investment income not included) of the two companies are as follows: Marked out of 1.00 Flag question 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 What is P income from S for 2014? Select one: a. $49,000 b. $29,600 c. $ 27,200 d. $39.200 Question 34 Not yet answered Xco, purchased 100% of Y Common stock at 1/1/2020 for $ 300,000 on the same date they co stock was $ 100,000 and retained earning $120,000, at acquisition date the net assets of y co. book value was equal to fair value except (inventory FV more than BV of $26,000) and (and its FV more than BV10,000 ) (Building its FV more than BV by $ 14,000) but ( equipment its FV less than B V by $10,000) if y Co, reported $160,000 net income for 31/12/2020 and paid $ 60,000 dividends Marked out of 1.00 P Flag question Other information 1- the y inventory 50% sold during 2020 2- the building useful life was 7 years, but equipment 5 years 3- there is no impairment for goodwill during 2020 what is amount of investment in consolidated balance sheet on 31/12/2020 Select one: a. 300,000 b. 387,000 c. 413,000 d. o Next page Previous page 35 acquisition occurs when one corporation takes over all the operations of another business entity, and that entity is dissolved Select one: ut of O True question False