P Corporation acquired a 60% interest in S Corporation on January 1, 2017, at book value equal to fair value. During 2017, P sold merchandise that cost $135,000 to S for $189,000. One-third of this merchandise remained in S's inventory at December 31, 2017. S reported net income of $200,000 for 2017. P's income from S for 2017 is:

Select one:

A. $102,000.

B. $60,000.

C. $90,000.

D. $120,000.

Answer rating: 100% (QA)

Solution Cost of mercandise 135000 Sold to S 1890... View the full answer