P Corporation owns 80 percent of S Inc.'s common stock. During 2020, P sold Inventory to S for$250,000 on the same terms as salesmade to third parties. S sold all of the inventory purchased from P in 2020The following information pertains to S and P sales for 2020Select one:Pa. $430,000b. $500,000C. $750,000d. $680,000SSales$1,000,000Cost of Sales(400,000)Gross Profit$ 600,000What amount should P report as cost of sales in its 2021 consolidated income statement$ 700,000(350,000)$ 350,000 on 4edout ofa questionP Corporation acquired an 80% interest in S Corporation on January 1, 2014, when the bookvalues of S assets and liabilities were equal to their fair values. The cost of the 80% interest wasequal to 80% of the book value of S net assets. During 2014, P sold merchandise that cost$35,000 to S for $43,000. On December 31, 2014, three-fourths of the merchandise acquiredfrom P remained in S inventory. Separate incomes (investment income not included) of the twocompanies are as follows:PSales Revenue$180,000Cost of Goods Sold120,000Operating Expenses17,000Separate incomes$ 43,000$ 49,000the year ended December 31, 2014,the unrealized income from intercompany salesSelect one:OOS$160,00090,00021,000a. $6,000 lossb. $6,000 profitc. $2,000 profitd. $2,000 loss

Consolidated financial statements are financial statements that present the financial position,…

P Corporation owns 80 percent of S Inc.'s common stock. During 2020, P sold Inventory to S for $250,000 on the same terms as sales made to third parties. S sold all of the inventory purchased from P in 2020 The following information pertains to S and P sales for 2020 Select one: O P a. $430,000 b. $500,000 c. $750,000 d. $680,000 S Sales $1,000,000 Cost of Sales (400,000) Gross Profit $ 600,000 What amount should P report as cost of sales in its 2021 consolidated income statement $ 700,000 (350,000) $ 350,000

P Corporation owns 80 percent of S Inc.'s common stock. During 2020, P sold Inventory to S for $250,000 on the same terms as sales made to third parties. S sold all of the inventory purchased from P in 2020 The following information pertains to S and P sales for 2020 Select one: O P a. $430,000 b. $500,000 c. $750,000 d. $680,000 S Sales $1,000,000 Cost of Sales (400,000) Gross Profit $ 600,000 What amount should P report as cost of sales in its 2021 consolidated income statement $ 700,000 (350,000) $ 350,000

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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