Question: P Company owns 100 percent of S Company The following

P Company owns 100 percent of S Company. The following are accounts from the balance sheets and income statements of both companies:

What would be the combined amount of each of the above accounts on the consolidated financial statements assuming the following additional information? (1) S Company sold to P Company merchandise at cost in the amount of $540,000; (2) P Company sold all the merchandise it bought from S Company to customers, but it still owes S Company $120,000 for themerchandise.

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  • CreatedSeptember 10, 2014
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