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amwell Corp. owns 100% of Sandor Corp.’s common stock. On January 2, 2019, Samwell sold to Sandor for P30,000 machinery with a carrying amount of P22,500. Sandor is depreciating the acquired machinery over a five year life by the straight-line method. The net adjustments to compute 2019 and 2020 Profit Attributable to Equity Holders of Parent before income tax would be an increase (decrease) of: a. 2019 - (P7,500) ; 2020 - 0 b. 2019 - (P6,000) ; 2020 - P1,500 c. 2019 - (P6,000) ; 2020 - 0 d. 2019 - (P7,500) ; 2020 - P1,500

amwell Corp. owns 100% of Sandor Corp.’s common stock. On January 2, 2019, Samwell sold to Sandor for P30,000 machinery with a carrying amount of P22,500. Sandor is depreciating the acquired machinery over a five year life by the straight-line method. The net adjustments to compute 2019 and 2020 Profit Attributable to Equity Holders of Parent before income tax would be an increase (decrease) of: a. 2019 - (P7,500) ; 2020 - 0 b. 2019 - (P6,000) ; 2020 - P1,500 c. 2019 - (P6,000) ; 2020 - 0 d. 2019 - (P7,500) ; 2020 - P1,500

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Samwell Corp. owns 100% of Sandor Corp.’s common stock. On January 2, 2019, Samwell sold to Sandor for P30,000 machinery with a carrying amount of P22,500. Sandor is depreciating the acquired machinery over a five year life by the straight-line method. The net adjustments to compute 2019 and 2020 Profit Attributable to Equity Holders of Parent before income tax would be an increase (decrease) of:

a. 2019 - (P7,500) ; 2020 - 0

b. 2019 - (P6,000) ; 2020 - P1,500

c. 2019 - (P6,000) ; 2020 - 0

d. 2019 - (P7,500) ; 2020 - P1,500

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