P CO 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 2023, S sold merchandise to P cost 32,000 for $40,000.On 31/12/ 2023,75% of this merchandise is still in P inventory. Separate incomes for P&S are summarized as follows: S Sales 200,000 Cost of sales 100,000 Gross profit 100,000 Operating expenses 80,000 Separate income 20,000 Select one: O P a. 16,200 b. 12,000 c. 12,600 d. 16,000 900,000 400,000 500,000 what is the amount of Income from S reported in P income statement? 200,000 300,000

P CO 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 2023, S sold merchandise to P cost 32,000 for $40,000.On 31/12/ 2023,75% of this merchandise is still in P inventory. Separate incomes for P&S are summarized as follows: S Sales 200,000 Cost of sales 100,000 Gross profit 100,000 Operating expenses 80,000 Separate income 20,000 Select one: O P a. 16,200 b. 12,000 c. 12,600 d. 16,000 900,000 400,000 500,000 what is the amount of Income from S reported in P income statement? 200,000 300,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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P CO 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 40,000 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 Gross profit 500,000 100,000 Operating expenses 200,000 80,000 Separate income $300,000 $ 20,000 What is amount of unrealized income from intercompany sales?…
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