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

question 8

Multiple Choice

P Company regularly sells merchandise to its 80%-owned subsidiary,S Corporation.In 2016,P sold merchandise that cost $192,000 to S for $240,000.Half of this merchandise remained in S's December 31,2016 inventory.During 2017,P sold merchandise that cost $300,000 to S for $375,000.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)$1,809,000.
• B)$1,815,000.
• C)$1,821,000.
• D)$2,190,000.

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Definitions:

Genetically Predisposed

Having a likelihood of developing certain traits or conditions based on one's genetic makeup.

Competitive Sports

Sports activities that involve rivalry among participants to win or achieve a specific goal, often emphasizing physical exertion and skill.

Nature Provides

The concept that the natural world offers resources and conditions necessary to support life and fulfill needs.

Nature

The inherent qualities and characteristics of a person or thing, often contrasted with nurture which refers to the influence of the environment and learning.