P Company Owns an 80% Interest in S Company

Multiple Choice

P Company owns an 80% interest in S Company.During 2017,S sells merchandise to P for $200,000 at a profit of $40,000.On December 31,2017,50% of this merchandise is included in P's inventory.Income statements for P and S are summarized below: Controlling interest in consolidated net income for 2017 is:

A) $300,000.
B) $380,000.
C) $396,000.
D) $420,000.