P Corporation Purchased an 80% Interest in S Corporation on January

Multiple Choice

P Corporation purchased an 80% interest in S Corporation on January 1, 2016, at book value for $300,000. S's net income for 2016 was $90,000 and no dividends were declared. On May 1, 2016, P reduced its interest in S by selling a 20% interest, or one-fourth of its investment for $90,000. What will be the Consolidated Gain on Sale and Subsidiary Income Sold for 2016?

A) Consolidated Gain on Sale, $9,000; Subsidiary Income Sold, $6,000
B) Consolidated Gain on Sale, $9,000; Subsidiary Income Sold, $15,000
C) Consolidated Gain on Sale, $15,000; Subsidiary Income Sold, $6,000
D) Consolidated Gain on Sale, $15,000; Subsidiary Income Sold, $15,000