Question 39 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 net assets. During 2014, P sold to S merchandise that cost $70,000 to Sfor $86,000. On December 31, 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 Marked out of 1.00 Pag question Sales Revenue $180,000 $160.000 Cost of Goods Sold 120,000 90,000 21.000 Operating Expenses 17,000 Separate incomes $ 43,000 549,000 The consolidated income statement for P Corporation and subsidiary for the year ended December 31, 2014 will show consolidated Operating Expenses of Select one: 0 a $ 38.000 b. 550,000 c. $12,000 d. $24,000 Question 40 The elimination entry under the perpetual inventory system for intercompany sales is a debit to sales and a credit to Cost of goods sold Not yet answered Select one: Marked out of O True 1.00 p Flag question O False