PROBLEM 1 On January 1, 20x0, P Company purchased 80 percent of the outstanding shares of S Compar P650,000.On that date, S Company P300,000 capital stock and P500,000 retained earnings. 4 undervalued asset attributable to building amounting to P75,000 with a remaining life of 25 ; other assets and liabilities ofS Company had book value approximated their fair market valu On January 1, 20x1 P’s common stock and retained earnings amounted to P1,000,000 and P8 respectively,while S Company's retained earnings is P600,000. The 20x1 net income and dividends using cost (or initial value) method that was as follows; Net Income P Company S Company P340,000 P150,000 On April 1, 20x1, S Company sold equipment with book value of P30,000 to P Company fo gain on the sale is included in the net income of S Company indicated above. The equipment have to have a remaining useful life of five years from the date of sale.
PROBLEM 1 On January 1, 20x0, P Company purchased 80 percent of the outstanding shares of S Compar P650,000.On that date, S Company P300,000 capital stock and P500,000 retained earnings. 4 undervalued asset attributable to building amounting to P75,000 with a remaining life of 25 ; other assets and liabilities ofS Company had book value approximated their fair market valu On January 1, 20x1 P’s common stock and retained earnings amounted to P1,000,000 and P8 respectively,while S Company's retained earnings is P600,000. The 20x1 net income and dividends using cost (or initial value) method that was as follows; Net Income P Company S Company P340,000 P150,000 On April 1, 20x1, S Company sold equipment with book value of P30,000 to P Company fo gain on the sale is included in the net income of S Company indicated above. The equipment have to have a remaining useful life of five years from the date of sale.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter14: Intercorporate Investments In Common Stock
Section: Chapter Questions
Problem 16E
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Question
The investment in subsidiary account on December 31, 20x1:
A. 748,500
B. 725,000
C. 700,000
D. 650,000
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