Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. please answer correct with explanation pco owns

please answer correct with explanation PCO owns a 90% interest in S Co,...

60.1K

Verified Solution

Question

Accounting

please answer correct with explanation image

PCO owns a 90% interest in S Co, purchased at a time when the book values of S recorded assets and liabilities were equal to fair values. During 2014, P sold merchandise to S cost 40,000 for $32,000. At December 31, 2014, 75% of this merchandise sold to third party Separate incomes for P&S are summarized as follows: P S Sales 900.000 200,000 Cost of sales 400,000 100.000 500,000 100,000 Gross profit Operating expenses Separate income 200.000 80.000 300,000 20,000 What is amount of income from s reported in Pincome statement ? Select one: O a. 16,200 b. 19,800 O c. 18,000 d. 20,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students