On January 1, 20X8, Parent Company acquired 90 percent ownership of Subsidiary Corporation, at underlying book value. The fair value of the noncontrolling interest at the date of acquisition was equal to 10 percent of the book value of Subsidiary Corporation. On Mar 17, 20X8, Subsidiary purchased inventory from Parent for $90,000. Subsidiary sold the entire inventory to an unaffiliated company for $120,000 on November 21, 20X8. Parent had produced the inventory sold to Subsidiary for $62,000. The companies had no other transactions during 20X8. Based on the information given above, what amount of sales will be reported in the 20X8 consolidated income statement?
a. $62,000
b. $120,000
c. $90,000
d. $58,000

b. $120,000

Explanation:

The computation of the amount of sales will be reported in the 20X8 consolidated income statement is shown below;

= Total consolidated sales - Intra company sales

= $120,000 + $90,000 - $90,000

= $120,000

Hence, the  amount of sales will be reported in the 20X8 consolidated income statement is $120,000

Therefore the option b is correct

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.