P Company Regularly Sells Merchandise to Its 80%-Owned Subsidiary, S

question 3

Multiple Choice

P Company regularly sells merchandise to its 80%-owned subsidiary, S Corporation. In 2016, P sold merchandise that cost $240,000 to S for $300,000. Half of this merchandise remained in S's December 31, 2016 inventory. During 2017, P sold merchandise that cost $375,000 to S for $468,000. Forty percent of this merchandise inventory remained in S's December 31, 2017 inventory. Selected income statement information for the two affiliates for the year 2017 is as follows: Consolidated cost of goods sold for P Company and Subsidiary for 2017 are:

• A) $2,260,500.
• B) $2,268,000.
• C) $2,276,700.
• D) $2,737,500.

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Definitions:

Major Activities

Major activities are the essential and significant tasks or operations that need to be carried out within a project or process to achieve its objectives.

Execution

Execution refers to the process of carrying out or implementing plans, tasks, or strategies effectively to achieve desired outcomes and objectives.

Technology Familiarity

The level of understanding and comfort individuals or organizations have with using new and existing technologies.

DPCI Score

A metric used to assess digital project complexity; however, without additional context, its specific meaning could be varied.