Please do not give solution in image format thanku Required informationPortland Inc. (Portland) owns 80% of Seattle Inc. (Seattle) and uses the cost method to account for its investment. The2023 income statements of both companies are shown below.Gross profitMiscellaneous revenues (losses)Depreciation expenseIncome tax expenseNet IncomePortland$100,000(30,000)(20,000)(20,000$30,000Seattle$50,000(20,000)(15,000)(6,000)$9,000On January 1, 2023, Seattle acquired equipment for $7,000 and sold it the same day to Portland for $12,000. Theequipment had a remaining useful life of 10 years on that date. Both companies are subject to an effective tax rate of 40%. Which of the following is the correct amount of gross profit appearing on Portland's 2023 consolidated income statement?Multiple ChoiceO $145,000O $147,600O $150,000O $153,000

Name: Please do not give solution in image format thanku Required informatio
Uploaded: 2024-03-04T10:43:15.000Z
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Description: Please do not give solution in image format thanku Required informationPortland Inc. (Portland) owns 80% of Seattle Inc. (Seattle) and uses the cost method to account for its investment. The2023 income statements of both companies are shown below.Gro

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Required information Portland Inc. (Portland) owns 80% of Seattle Inc. (Seattle) and uses the cost method to account for its investment. The 2023 income statements of both companies are shown below. Gross profit Miscellaneous revenues (losses) Depreciation expense Income tax expense Net Income Portland Seattle $100,000 $50,000 (30,000) (20,000) (20,000) (15,000) (20,000 (6,000) $30,000 $9,000 On January 1, 2023, Seattle acquired equipment for $7,000 and sold it the same day to Portland for $12,000. The equipment had a remaining useful life of 10 years on that date. Both companies are subject to an effective tax rate of 40%.