P Corporation Acquired a 60% Interest in S Corporation on January

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 $225,000 to S for $315,000.One-third of this merchandise remained in S's inventory at December 31, 2014.S reported net income of $200,000 for 2014.P's income from S for 2014 is:

A) $60,000.
B) $90,000.
C) $120,000.
D) $102,000.