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

question 9

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 sales revenue for P and Subsidiary for 2017 are:

• A)$2,325,000.
• B)$2,400,000.
• C)$2,565,000.
• D)$2,700,000.

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Definitions:

Nice

Exhibiting a pleasant, agreeable, or kind nature, often used to describe individuals or actions.

Formal Promotions

The official advancement of an employee to a higher position within an organization, typically accompanied by increased responsibilities and compensation.

Millennials

A generational cohort that follows Generation X and precedes Generation Z, typically defined as people born from the early 1980s to the mid-1990s to early 2000s.

Optimistic

A mindset and attitude characterized by a positive outlook and expectation that good things will happen in the future.