ABC Corp. acquired a 60% interest in DEF on January 1, 2021 for P468,000 when DEF's net assets had a book value and fair value of P790,000. During 2021, ABC sold inventory items cost P780,000 to DEF for P1,040,000 and DEF's inventory at December 31, 2021 included one-fourth of this merchandise. ABC reported separate income from its own operations of P488,000, and DEF reported a net loss of P195,000 for 2021. Consolidated net income for ABC and DEF for 2021 is:

ABC Corp. acquired a 60% interest in DEF on January 1, 2021 for P468,000 when DEF's net assets had a book value and fair value of P790,000. During 2021, ABC sold inventory items cost P780,000 to DEF for P1,040,000 and DEF's inventory at December 31, 2021 included one-fourth of this merchandise. ABC reported separate income from its own operations of P488,000, and DEF reported a net loss of P195,000 for 2021. Consolidated net income for ABC and DEF for 2021 is:

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 18E

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