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P Co owns a 80% interest in S Co, acquired several years ago at a cost equal to book value and fair value. S sells merchandise to P for loss the first time in 2019, and some is unsold at December 31, 2019. In computing income from subsidiary for 2019 under the equity method, P uses which equation?

Select one:

a. 80% of S income less 100% of the unrealized loss in P ending inventory

b. 80% of S income less 80% of the unrealized loss in P ending inventory

c. 80% of S income plus 80% of the unrealized loss in P ending inventory

d. 80% of S income plus 100% of the unrealized loss in P ending inventory

W, Inc. holds 100% of the common stock of C Company, an investment acquired for $680,000. Immediately following the combination, W net assets have a book value of $1,150,000 and a fair value of $1,390,000. The book value and the fair value of C net assets on the date of combination are $400,000 and $550,000, respectively. Immediately following the combination,a consolidated balance sheet is prepared

Based on the information given above,what will be the amount of net assets reported in the consolidated balance sheet,prepared immediately following the combination?

Select one:

a. 1,700,000

b. 1,830,000

c. 1,550,000

d. 1,150,000

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