1. Morny Corporation sold equipment to its 80% owned subsidiary, Morrie Corporaiton on January 1, 2020. Morny sold the equipment for P110,000 when its book value was P85,000 and it had a 5-year remaining useful life with no expected salvage value. Separate balance sheets for Morny and Morrie included the following equipment and accumulated depreciation amounts on December 31, 2020: Morny Morrie Equipment P750,000 P300,000 Less: Accumulated depreciation (200,000) (50,000) Equipment, net P550,000 P250,000 Consolidated amounts for equipment and accumulated depreciation at December 31, 2020, were respectively. a. P1,025,000 and P250,000 b. P1,050,000 and P250,000 c. P1,025,000 and P245,000 d. P1,045,000 and P245,000
1. Morny Corporation sold equipment to its 80% owned subsidiary, Morrie Corporaiton on
January 1, 2020. Morny sold the equipment for P110,000 when its book value was P85,000
and it had a 5-year remaining useful life with no expected salvage value. Separate
balance sheets for Morny and Morrie included the following equipment and
depreciation
Morny Morrie
Equipment P750,000 P300,000
Less: Accumulated depreciation (200,000) (50,000)
Equipment, net P550,000 P250,000
Consolidated amounts for equipment and accumulated depreciation at December 31,
2020, were respectively.
a. P1,025,000 and P250,000
b. P1,050,000 and P250,000
c. P1,025,000 and P245,000
d. P1,045,000 and P245,000
2. Rommel, Inc. acquired a 60% interest in Mikee Company several years ago. During 2020,
Mikee sold inventory costing P75,000 to Rommel for P100,000. A total of 16% of this inventory
was not sold to outsider until 2021. During 2021, Mikee sold inventory costing P96,000 to
Rommel for P120,000. A total of 35% of this inventory was not sold to outsiders until 2022. In
2021, Rommel reported cost of sales of P380,000 while Mikee reported P210,000. What is the
consolidated cost of sales?
a. 522,400
b. 474,400
c. 473,400
d. 594,400
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