stion 1 How are intercompany sales eliminated? yet wered ed out of Select one: lag question a. Decrease sales and cost of sales b. Decrease sales and inventory c. Decrease cost of sales and inventory d. Decrease Parents inventory and Subsidiary inventory stion 2 wet ered 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, 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: ed out of lag 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 The consolidated income statement for P Corporation and subsidiary for the year ended December 31, 2014 will show consolidated cost of sales of Select one: a. $ 120,000 b. $210,000 C. $136,000 d. $148,000