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

question 32

Multiple Choice

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 $120,000 for 2017. P's income from S for 2017 is:

• A) $36,000.
• B) $50,400.
• C) $54,000.
• D) $61,200.

---

Definitions:

Ecological Views

Perspectives or considerations regarding the relationships between living organisms, including humans, and their physical environment.

Logo Redesign

The process of modifying or updating a company's logo to refresh the brand identity or better align with current trends.

Reduces Packaging

The practice of limiting the amount of wrapping or protective material used on products as a means to reduce waste and environmental impact.

Sustainable Consumer Behavior

Purchasing habits that consider the long-term impact on the environment and society, aiming to reduce negative effects.