P Corporation acquired an 80% interest in S Corporation on January 1, 2023, when the book...

 

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P Corporation acquired an 80% interest in S Corporation on January 1, 2023, when the book values of S assets and liabilities were equal to their fair values. The cost of the 80% interest was equal to 80% of the book value of S net assets. During 2023, P sold merchandise that cost $70,000 to S for $86,000. On December 31, 2014, one-fourth of the merchandise acquired from P remained in S inventory. Separate incomes (investment income not included) of the two companies are as follows: P S Sales Revenue 180,000 160,000 Cost of Goods Sold 120,000 90,000 Operating Expenses 17,000 21,000 Separate incomes 43,000 49,000 What is P income from S for 2023? P Corporation acquired an 80% interest in S Corporation on January 1, 2023, when the book values of S assets and liabilities were equal to their fair values. The cost of the 80% interest was equal to 80% of the book value of S net assets. During 2023, P sold merchandise that cost $70,000 to S for $86,000. On December 31, 2014, one-fourth of the merchandise acquired from P remained in S inventory. Separate incomes (investment income not included) of the two companies are as follows: P S Sales Revenue 180,000 160,000 Cost of Goods Sold 120,000 90,000 Operating Expenses 17,000 21,000 Separate incomes 43,000 49,000 What is P income from S for 2023?

Answer rating: 100% (QA)

To calculate Ps income from S for 2023 we need to consider the inter... View the full answer