69. A parent owns 80% of its subsidiary, and sells merchandise to its subsidiary at a 25% markup on cost. The subsidiary's ending inventory includes $750,000 purchased from the parent. The subsidiary's beginning inventory includes $825,000 purchased from the parent. What is the effect of the above on the parent's equity in net income of the subsidiary for the current year? a. P15,000 increase b. P12,000 increase 70 Yukor Co 27597 C. P15,000 decrease d. no effect ont of the voting common stock of Ontario Corn on January 1

69. A parent owns 80% of its subsidiary, and sells merchandise to its subsidiary at a 25% markup on cost. The subsidiary's ending inventory includes $750,000 purchased from the parent. The subsidiary's beginning inventory includes $825,000 purchased from the parent. What is the effect of the above on the parent's equity in net income of the subsidiary for the current year? a. P15,000 increase b. P12,000 increase 70 Yukor Co 27597 C. P15,000 decrease d. no effect ont of the voting common stock of Ontario Corn on January 1

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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- Paragraph 3 On January 1, 2023 Subsidiary held merchandise acquired from Parent for $10,000. During 2013 Parent sold merchandise to Subsidiary for $ 30,000, of which Subsidiary holds $6,000 on December 31, 2023. Parent's gross profit on sales is 30% for both years. On December 31, 2023 Subsidiary still owes Parent $2,000 for merchandise. 4) Make all of the entries pertaining to intercompany sales and inventories
10. During 20x9, PP Corporation recorded sales of inventory costing P500,0000 to SS Company, its wholly owned subsidiary, on the same terms as sales made to third parties. At December 31,20x9, SS held one- fifth of this goods inventory. The following information pertains to PP and SS's sales for 20x9: (see image below) In its 20x9 consolidated income statement, what amount should PP report as cost of sales? * PP P 2,000,000 (800,000) P1.200.000 SS P1,400,000 1700.000) P 700.000 Sales Cost of Sales Gross Profit Your answer
A subsidiary sold goods costing P1.2 million to its parent for P1.4 million. All of the inventory is held by the parent at year-end. The subsidiary is 80% owned and the parent and subsidiary operate in different tax jurisdictions. The parent pays taxation at 30% and the subsidiary pays taxation at 30%. Calculate any deferred tax asset that arises on the sale of the inventory to the parent. a. P 60,000 c. P48,000 b. P200,000 d. P80,000
Sinovac Corporation, a 75% own subsidiary of Pfizer Corporation sells inventory to its parent at 150% of cost, while Pfizer Corporation sells merchandise to its subsidiary at 80% above cost. Inventories of the two companies for 2022 are as follows: Pfizer Corp. Sinovac Corp. Beginning inventory P1,200,000 P750,000 Ending inventory 800,000 500,000 Pfizer Corporation’s beginning and ending inventories include merchandise acquired from Sinovac Corporation of P150,000 and P210,000, respectively. Sinovac Corporation also reported beginning and ending inventories from Pfizer Corporation of P180,000 and P100,000, respectively. Sinovac Corporation reported a net income and paid dividends for 2022 of P300,000 and P100,000 respectively. Pfizer on the other hand has income from separate operation of P750,000. How much of the consolidated net income for 2022 is attributable to Pfizer?
4. Jackson company owns 80% of Canton corporation's common stock during October canceled merchandise to Jackson for $250,000 at December 31, 40% of the merchandise remains in Jackson's inventory gross profit percentage is 120% for Jackson and 30% for Canon the amount of intra- entity gross profit in inventory at December 31 That should be eliminated in the consolidation process is a. Zero b. $24,000, c. $75,000 d. $30,000
In 2020, parent reports Cost of Goods Sold of $4,000,000. Its 90% owned subsidiary reports Cost of Goods Sold of $1,000,000 in 2020. During 2019 the subsidiary had $60,000 of unrealized gains on intercompany sales to its parent. By the end of 2020, all inventory subject to the intercompany transfer has been sold to third parties. In 2020, the subsidiary had sold $200,000 of goods to its parent and had $30,000 of unrealized gains. How much is consolidated cost of goods sold in 2020.
A.Selected information from the separate and consolidated income statements of CHARTER LTD. and as subsidiary, MEMBER INC. for the year ended December 31, 2021 are as follows: |CHARTER LTD. P600,000 Consolidated P924,000 693,000 MEMBER INC. Sales P420,000 330,000 P 90,000 COGS 450,000 | Gross profit P150,000 P231,000 During 2021, CHARTER LTD. sold goods to MEMBER INC. at the same mark-up on cost that CHARTER LTD. uses for all sales. At December 31, 2021, MEMBER INC. had not paid all of these goods and still held 37.5% of them in inventory. Compute for the original cost of goods in MEMBER INC.'s inventory acquired from Apple.
A parent company regularly sells merchandise to its 70%-owned subsidiary. Which of the following statements describes the computation of noncontrolling interest share? A. (The subsidiary's net income × 30%) + unrealized profits in the beginning inventory - unrealized profits in the ending inventory B. (The subsidiary's net income + unrealized profits in the ending inventory - unrealized profits in the beginning inventory) × 30% C. (The subsidiary's net income + unrealized profits in the beginning inventory - unrealized profits in the ending inventory) × 30% D. The subsidiary's net income times 30%
Anderson Company, a 90% owned subsidiary of Philbin Corporation, transfers inventory to Philbin at a 25% gross profit rate. The following data are available pertaining specifically to Philbin's intra-entity purchases from Anderson. Anderson was acquired on january 1, 2020. 2020 2021 2022 Purchases by Philbin Ending inventory on Philbin's books 1,200 4,000 $ ৪,000 5 12,000 $15.000 3,000 Assume the equity method is used. The following data are available pertaining to Anderson's income and dividends. 2020 2021 2022 $ 70,000 $ 85,000 $ 94,000 Dividends paid by Anderson 10,000 10,000 15,000 Anderson's net income Assuming there are no excess amortizations associated with the consolidation, and no other intra-entity asset transfers, compute the net income attributable to the noncontrolling interest of Anderson for 2022. O $9,400. $9,375. $9,425. $8,485. $9,325.
A parent company regularly sells merchandise to its 80%-owned subsidiary. Which of the following statements describes the computation of non-controlling interest income? a. (The subsidiary’s net income + unrealized profits in the ending inventory – unrealized profits in the beginning inventory) x 20% b. The subsidiary’s net income times 20% c. The subsidiary’s net income x 20%) + unrealized profits in the beginning inventory- unrealized profits in the ending inventory d. The subsidiary’s net income + unrealized profits in the beginning inventory – unrealized profits in the ending inventory) x 20%
Perry, Inc. owns a 90% interest in Brown Corp. During 20X6, Brown sold $100,000 in merchandise to Perry at a 30% gross profit. Ten percent of the goods are unsold by Perry at year end. The noncontrolling interest will receive what gross profit as a result of these sales? a. $0 b. $2,700 c. $3,000 d. $27,000
Parent Company owns 90% of Subsidiary Company. For the current year, Parent and Subsidiary each report sales of P1,000,000 and P900,000 each, respectively. Also in the current year, Subsidiary sold goods to Parent P200,000. 40% of the goods purchased by the Subsidiary still remain unsold by the end of the year. Parent and Subsidiary have gross profit rates of 20% and 10% respectively and also report ending inventory of P85,000 and P90,000, each respectively. 1. Determine consolidated sales 2. Determine consolidated consolidated cost of sales 3. Determine consolidated inventory at year-end.