P owns 100% of S. The following chart shows some line items from the separate financial...
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P owns 100% of S. The following chart shows some line items from the separate financial statements of the companies for 20X2. P's net income below does NOT include any equity in income of S. For simplicity, assume cost of goods sold is the only expense. (credit) or debit Sales revenue Cost of goods sold Net income (170,000) 93,000 (77,000) (85,000) 52,000 (33,000) P+S (255,000) 145,000 (110,000) Inventory at 12/31/20X2 25,000 15,000 40,000 • In 20X2, P sold inventory to S for $80,000. P had purchased that inventory for $56,000. • S still held $10,000 of the 20X2 purchases from P in inventory at the end of 20X2. What did P report as a gross profit on the sales to S? (Provide a dollar amount, not a ratio.) How much gross profit is deferred from 20X2 to 20X3 as a result of the inventory sale on the consolidated income statement? What will be the Sales revenue on the consolidated income statement for 20X2? What will be the Cost of goods sold on the consolidated income statement for 20X2? P owns 100% of S. The following chart shows some line items from the separate financial statements of the companies for 20X2. P's net income below does NOT include any equity in income of S. For simplicity, assume cost of goods sold is the only expense. (credit) or debit Sales revenue Cost of goods sold Net income (170,000) 93,000 (77,000) (85,000) 52,000 (33,000) P+S (255,000) 145,000 (110,000) Inventory at 12/31/20X2 25,000 15,000 40,000 • In 20X2, P sold inventory to S for $80,000. P had purchased that inventory for $56,000. • S still held $10,000 of the 20X2 purchases from P in inventory at the end of 20X2. What did P report as a gross profit on the sales to S? (Provide a dollar amount, not a ratio.) How much gross profit is deferred from 20x2 to 20X3 as a result of the inventory sale on the consolidated income statement? What will be the Sales revenue on the consolidated income statement for 20X2? What will be the Cost of goods sold on the consolidated income statement for 20X2? P owns 100% of S. The following chart shows some line items from the separate financial statements of the companies for 20X2. P's net income below does NOT include any equity in income of S. For simplicity, assume cost of goods sold is the only expense. (credit) or debit Sales revenue Cost of goods sold Net income (170,000) 93,000 (77,000) (85,000) 52,000 (33,000) P+S (255,000) 145,000 (110,000) Inventory at 12/31/20X2 25,000 15,000 40,000 • In 20X2, P sold inventory to S for $80,000. P had purchased that inventory for $56,000. • S still held $10,000 of the 20X2 purchases from P in inventory at the end of 20X2. What did P report as a gross profit on the sales to S? (Provide a dollar amount, not a ratio.) How much gross profit is deferred from 20X2 to 20X3 as a result of the inventory sale on the consolidated income statement? What will be the Sales revenue on the consolidated income statement for 20X2? What will be the Cost of goods sold on the consolidated income statement for 20X2? P owns 100% of S. The following chart shows some line items from the separate financial statements of the companies for 20X2. P's net income below does NOT include any equity in income of S. For simplicity, assume cost of goods sold is the only expense. (credit) or debit Sales revenue Cost of goods sold Net income (170,000) 93,000 (77,000) (85,000) 52,000 (33,000) P+S (255,000) 145,000 (110,000) Inventory at 12/31/20X2 25,000 15,000 40,000 • In 20X2, P sold inventory to S for $80,000. P had purchased that inventory for $56,000. • S still held $10,000 of the 20X2 purchases from P in inventory at the end of 20X2. What did P report as a gross profit on the sales to S? (Provide a dollar amount, not a ratio.) How much gross profit is deferred from 20x2 to 20X3 as a result of the inventory sale on the consolidated income statement? What will be the Sales revenue on the consolidated income statement for 20X2? What will be the Cost of goods sold on the consolidated income statement for 20X2?
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To calculate the various values we can follow these steps 1 Calculate Gross Profit for P on sales to ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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