P Company acquired an 80% interest in S Company on January 1, 2011, for an...
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Accounting
P Company acquired an 80% interest in S Company on January 1, 2011, for an amount equal to book value. S Company sold land to P Company in 2011 at a profit of P5,000. The land is held by the buying affiliate firm until 2013, when it is sold to an unaffiliated party for a profit of P6,000. S Company reported net income for 2011, 2012, and 2013 of P30,000, P40,000 and P50,000, respectively. The parents investment income for 2011 would be?
A. P 24,000
b. P 28,000
c. P 44,000
d. P 20,000
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