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

question 13

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:

Messages

Units of information communicated from one entity to another, conveying thoughts, feelings, or instructions.

Retina

The light-sensitive layer at the back of the eye that captures visual information and sends it to the brain for interpretation.

Night Vision

The ability to see in low-light conditions, which can vary significantly among different organisms and technologies designed to enhance human nighttime visibility.

Cones

Photoreceptor cells in the retina of the eye responsible for color vision and functioning best in relatively bright light.