34 P Co owns a 80% interest in S Company, acquired several years ago at...
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Accounting
34 P Co owns a 80% interest in S Company, acquired several years ago at a cost equal to book value and fair value. S sells merchandise to P for profit the first time in 2019, and some is unsold at December 31, 2019. In computing income from the investee for 2019 under the equity method, P uses which equation?
Select one: a. 80% of S income less 100% of the unrealized profit in P ending inventory b. 80% of S income less 80% of the unrealized profit in P ending inventory c. 80% of S income plus 100% of the unrealized profit in P ending inventory d. 80% of S income plus 80% of the unrealized profit in P ending inventory
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