P Corporation acquired a 60% interest in S Corporation on January 1, 2014, at book value equal to fair value.During 2014, P sold merchandise that cost $225,000 to S for $315,000.One-third of this merchandise remained in S's inventory at December 31, 2014.S reported net income of $200,000 for 2014.P's income from S for 2014 is:
A)$60,000.
B)$90,000.
C)$120,000.
D)$102,000.

Question

Quizplus · Accepted Answer

The Answer of P Corporation acquired a 60% interest in S Corporation on January 1, 2014, at book value equal to fair value.During 2014, P sold merchandise that cost $225,000 to S for $315,000.One-third of this merchandise remained in S's inventory at December 31, 2014.S reported net income of $200,000 for 2014.P's income from S for 2014 is:
A)$60,000.
B)$90,000.
C)$120,000.
D)$102,000.

P Corporation Acquired a 60% Interest in S Corporation on January