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 $225,000 to S for $315,000. 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:
A) $60,000.
B) $90,000.
C) $120,000.
D) $102,000.

Question

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The Answer of 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 $225,000 to S for $315,000. 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:
A) $60,000.
B) $90,000.
C) $120,000.
D) $102,000.

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