Multiple Choice
P Corporation acquired a 60% interest in S Corporation on January 1, 2014, at book value equal to fair value.During 2014, P sold merchandise that cost $135,000 to S for $189,000.One-third of this merchandise remained in S's inventory at December 31, 2014.S reported net income of $120,000 for 2014.P's income from S for 2014 is:
A) $36,000.
B) $50,400.
C) $54,000.
D) $61,200.
Correct Answer:

Verified
Correct Answer:
Verified
Q2: Use the following information for Questions 22
Q3: The following balances were taken from the
Q5: Does the elimination of the effects of
Q6: Poole Company owns a 90% interest in
Q8: On January 1, 2014, Pharma Company
Q9: What is the essential procedural difference between
Q10: What procedure is used in the consolidated
Q14: In determining controlling interest in consolidated income
Q24: Sales from one subsidiary to another are
Q25: A parent company regularly sells merchandise to