Answered: 1. The net income (loss) of Port Corp.…

Business

Accounting

1. The net income (loss) of Port Corp. for 2008 on a consolidated basis was:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Port Corp. and Sort Co. are sister companies. Port Corp. owns 140,000 shares of Sort
Co.'s outstanding stock of 200,000 shares; on the other hand, Sort Co. owns 120,000 of Port
Corp.'s outstanding stock of 600,000 shares.

Port Corp. announced a net income of P84,080 for the year 2008 while Sort Co. sustained
a net loss of P12,000 for the same year. The operating results were arrived without considering
the earnings of the affiliate.
1. The net income (loss) of Port Corp. for 2008 on a consolidated basis was:

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