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
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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 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
Transcribed Image Text: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
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