please answer these questions and provide solution 38. PP Corp owns 80% of SS Inc.'s common stock. During 2019, PP sold SS P250,000 of inventory on the same terms as salesmade to third parties. SS sold the entire inventory purchased for PP in 2019. The following information pertains to SS and PP'ssales for 2019:PPSSSalesCost of SalesP1,000,000400,000P700,000350,000What amount should PP report as Cost of sales in its 2019 consolidated income statement?a. P750,000c. 500,000b. 680,000d. 430,000 40. P Corporation acquired 70% of the voting common stock of S Co. at a time when S Co.'s book values and fair values wereequal. Separate incomes of P Corporation and S Co. for 2019 are as follows:P CorporationS CorporationSalesP700,000400,000Cost of goods sold400,000200,000Operating expenses120,000100,000Separate income180.000100.000Intercompany sales from Parent to Subsidiary for 2018 and 2019 are summarized as follows:CostSelling Price390,000Intercompany sales 2018250,000Unsold at year-end40%50%Intercompany sales 2019175,000275,000The consolidated income statement will show (1) sales revenue and (2) cost of goods sold of:a. (1) P825,000(2) 319,000c. (1) 900,000(2) 340,000(2) 419,000c. (1) 750,000 (2) 350,000d. (1) 825,00041. TURBO Corporation sells good on the instalment basis. For the year just ended, the following were reported: Cost ofinstalment sales, P1,680,000; Loss on repossession, P40,500; Fair value of repossessed merchandise, P337,500; Repossessedaccounts defaulted, P540,000; Deferred gross profit, end P324,000. Also during the year, an instalment account was written-off resulting to a bad debt expense in the amount of P42,000How much was the collection for the year?a.738,000c. 780,000b. 1,320,000d. 720,000

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38. PP Corp owns 80% of SS Inc.'s common stock. During 2019, PP sold SS P250,000 of inventory on the same terms as sales made to third parties. SS sold the entire inventory purchased for PP in 2019. The following information pertains to SS and PP's sales for 2019: PP SS Sales Cost of Sales P1,000,000 400,000 P700,000 350,000 What amount should PP report as Cost of sales in its 2019 consolidated income statement? a. P750,000 c. 500,000 b. 680,000 d. 430,000

38. PP Corp owns 80% of SS Inc.'s common stock. During 2019, PP sold SS P250,000 of inventory on the same terms as sales made to third parties. SS sold the entire inventory purchased for PP in 2019. The following information pertains to SS and PP's sales for 2019: PP SS Sales Cost of Sales P1,000,000 400,000 P700,000 350,000 What amount should PP report as Cost of sales in its 2019 consolidated income statement? a. P750,000 c. 500,000 b. 680,000 d. 430,000

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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