On January 2, 2020, P Company purchased 80% of the outstanding shares of S Company by paying P300,000. On this date, S had Share Capital and Retained Earnings amounting to P150,000 and P230,000 respectively. Also, on this date, an equipment was undervalued by P20,000 with remaining useful life of 10 years. On the same date, P had P1,000,000 of Share Capital and P700,000 of Retained Earnings. P and S reported the following for the year ended December 31, 2020: Net Income P- 338,000 S- 150,000 Dividends paid P - 200,000 S- 100,000 On October 1, 2020, P sold a machinery with a 5-year remaining useful life costing P1,500,000 with accumulated depreciation of P1,000,000 for P530,000 to S. How much is the Net Income Attributable to Parent? *

On January 2, 2020, P Company purchased 80% of the outstanding shares of S Company by paying P300,000. On this date, S had Share Capital and Retained Earnings amounting to P150,000 and P230,000 respectively. Also, on this date, an equipment was undervalued by P20,000 with remaining useful life of 10 years. On the same date, P had P1,000,000 of Share Capital and P700,000 of Retained Earnings. P and S reported the following for the year ended December 31, 2020: Net Income P- 338,000 S- 150,000 Dividends paid P - 200,000 S- 100,000 On October 1, 2020, P sold a machinery with a 5-year remaining useful life costing P1,500,000 with accumulated depreciation of P1,000,000 for P530,000 to S. How much is the Net Income Attributable to Parent? *

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On January 1, 2020, Elite Company paid P 18,000,000 for 50,000 ordinary shares of Craze Company which represent a 25% interest in the in the net assets of Craze. The acquisition cost is equal to the carrying amount of the net assets acquired. Elite has the ability to exercise significant influence over Craze. Elite received a dividend of P35 per share from Craze in 2020. Craze reported net income of P9,600,000 for the year ended December 31, 2020. In the December 31, 2020 statement of financial position, what amount should be reported as investmentin Craze Company?a. 22,150,000b. 20,400,000c. 18,650,000d. 18,000,000
On January 1, 2021, AB Company purchased 15,000 shares of C Inc. for P25 per share. A total of P15,000 was incurred in relation to acquisition of these shares. These shares were acquired for short term fluctuation in profit. On July 31, 2021, 5,000 of these shares were sold at P30 per share. On October 31, 2021, a P4 per share dividend was declared to be distributed on January 31, 2022. And the remaining shares were quoted at P28 per share on December 31, 2021. How much is the total net amount reported in its profit or loss for the period ending December 31, 2021?
On March 1, 2022, Dolor Company purchased 5,000 shares of Susan Incorporated paying P12 each share including P2 per share transaction cost. The shares were designated as financial asset through other comprehensive income. These shares are selling at P15 per share on December 31, 2022. How much is the amount of unrealized gain (loss) in comprehensive income for the period ending December 31, 2021?
On January 2, 2020, P Company acquired 80% investment in S Company. The acquisition cost was equal to P equity in S net assets on that date. The retained earnings of P and S are P500,000 and P100,000, respectively. During 2020, P had net income of P200,000, which included its equity in S earnings, and declared dividends of P50,000; S had net income of P40,000 and declared dividends of P20,000. On December 31, 2020, the consolidated retained earnings must be:
On January 2, 2020, P Company acquired 80% investment in S Company. The acquisition cost was equal to P equity in S net assets on that date. The retained earnings of P and S are P500,000 and P100,000, respectively. During 2020, P had net income of P200,000, which included its equity in S earnings, and declared dividends of P50,000; S had net income of P40,000 and declared dividends of P20,000. On December 31, 2020, the consolidated retained earnings must be: A. P666,000 B. P650,000 C. P766,000 D. P770,000
On January 1, 2020, MNO Company acquired 250,000 ordinary shares of PQR Company at P45 per share.At the time of purchase, PQR Company had outstanding1,000,000 shares with a carrying amount of P30,000,000. The following information pertains to year 2020: Net income of CD Company 3,100,500 MNO Company received cash dividend from PQRCompany 2.50 per ordinary share Market Value of PQR Company's shares 35 MNO Company has no significant influence and has elected irrevocably to measure the investment at fair value through other comprehensive income.How much is the unrealized gain/(loss) on financial asset-OCI at year-end?
P Company acquired all the outstanding shares of S Company by issuing 50,000 shares with a par value of P100 on July 1, 2021. P's ordinary shares were selling at P102 per share at the date of acquisition. On the same date, the net asset of S had a carrying value and fair value of P3,800,000 and P4,500,000 respectively. Out of pocket expenses of the business combination were as follows (see image below). How much is the amount charged to expense? Legal fees for contract of business combination Audit fees for SEC registration of share issue Brokerage fee Accountant fee for pre-acquisition audit Printing and registration of stock certificates Other direct costs of acquisition 41,200 50,000 22,500 35,000 10,000 16,800 General administrative costs 25,000 12,100 Listing fees in issuing new shares
On January 1, 2021, Manette Company acquired 100,000 ordinary shares of Nette Company for P6,000,000. At the date of purchase, Nette had 500,000 outstanding ordinary shares and shareholders' equity of P20,000,000. During the year 2021, Nette reported profit of P1,000,000 and declared and paid cash dividends of P1.50 per share. The fair value of Nette's share at December 31, 2021 was P68. What amount shall Manette Company recognize in profit or loss for the year 2021 if it is able to exercise significant influence over Nette Company as a result of the acquisition? A P950,000 B) P200,000 P350,000 P150,000
On January 1, 2021, merma Corp. purchased 80% of the outstandingshares of sand Co. at a cost of P1,620,000. On that date, sand hadP600,000 of ordinary shares and P1,000,000 of retained earnings. Allthe assets and liabilities of sand Co. have book values approximatelyequal to their respective market values, except for equipment with fairmarket value increase of 50,000 (remaining life of 4 years). For 2022, theoperating results of merma and sand are: Net income P1,000,000 andP500,000, respectively; Dividends paid, P200,000 and P80,000,respectively.During 2022, merma Corp. sold merchandise to sand at 120% of its cost,the same as that used in 2021 sales. The inventory of sand on January1, 2022 included P19,200 of merchandise purchased from merma Corp. in2021, while its December 31, 2022 inventory included P36,000 ofmerchandise purchased from merma Corp. in 2022. The RetainedEarnings beg of sand in 2022 was P1,200,000. merma uses theproportionate method in measuring NCI. Impairment loss was…
On January 1, 2021, ABC purchased 80% of the outstanding shares of DEF at a cost of P960,000. On that date, DEF had P600,000 worth of outstanding shares and P600,000 worth of accumulated profits. For 2021, ABCV had income of P336,000 from its own operations and paid dividends of P180,000. For 2021, DEF reported income of P64,000 and paid dividends of P36,000. All of the assets and liabilities of DEF have book values equal to their market value. On January 1, 2021, ABC sold equipment to DEF for P120,000. The book value of the equipment on that was P144,000. The loss of P24,000 is reflected in the income of ABC indicated above. The equipment is expected to have a useful life of five years from the date of the sale. In the December 31, 2021 consolidated statement of financial position, the non-controlling interest in net assets of Subsidiary should be presented at
On January 2, 2022, S Company acquired 80% of the stocks of L Company for P2,000,000. On this date, L Company had P1,000.000 of Share Capital and P800,000 of Retained Earnings. The carrying values of the identifiable assets and liabilities of L are equal to their fair values. During the year. L ships merchandise to S costing P800.000 at 25% above cost. At the end of the year, records show the following: S Company L Company Inv. beg 350,000 120,000 Inv. end 400,000 5,500,000 2,500,000 3,250,000 1,680,000 200,000 Sales Purchases Operating Exp. Dividends paid 650,000 300,000 500,000 350,000 The ending inventory of S includes merchandise from L amounting to P50,000. The reported impairment of goodwill in 2022 is P20,000. The parent opted to measure NCI at fair value. In 2021, S Company sold inventory costing P50,000 to $ Company (90%- owned) for P100,000. By the end of the year, L sold 80% of the inventory. The elimination entries in 2022 would include: a. Credit to Cost of Sales, P100,000…
On January 2, 2022, S Company acquired 80% of the stocks of L Company for P2,000,000. On this date, L Company had P1,000.000 of Share Capital and P800,000 of Retained Earnings. The carrying values of the identifiable assets and liabilities of L are equal to their fair values. During the year. L ships merchandise to S costing P800.000 at 25% above cost. At the end of the year, records show the following: S Company L Company 120,000 Inv. beg 350,000 Inv. end 400,000 200,000 Sales 5,500,000 2,500,000 3,250,000 1,680,000 650,000 Purchases Operating Exp. Dividends paid 300,000 500,000 350,000 The ending inventory of S includes merchandise from L amounting to P50,000. The reported impairment of goodwill in 2022 is P20,000. The parent opted to measure NCI at fair value. How much is the Consolidated Inventory on December 31, 2022? a.590,000 b.560,000 c.587,500 d.600,000