Question 36 Not yet answered Marked out of 1.00 P Flag question 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 remained in S inventory. Separate incomes (investment income not included) of the two companies are as follows: S $180,000 Sales Revenue $160,000 120,000 Cost of Goods Sold 90,000 17,000 Operating Expenses 21,000 $ 43,000 Separate incomes $ 49,000 What is P income from S for 2014? Select one: a. $ 27,200 b. $23,200 c. $39,200 d. $29,600