Assets Parent Subsidiary Company P 37,400 Company P' 30,900 34,200 22,900 179,000 Cash Accounts receivable, net 9,100 Inventories 16,100 Equipment, net Patents 40,000 10,000 Total Assets P 267,000 P112,600 Liabilities and Equities Accounts Payable Bonds Payable Common stock, Pl0 par P 4,000 P6,600 100,000 50,000 15,000 100,000 Share Premium 15,000 Reta ined eamings Total Liabilities and Equities 48,000 41,000 P 267,000 P112,600 At the date of acquisition, all assets and liabilities of Subsidiary Company have book value approximately e their respective market values except the following asdetemined by appraisalas follows: P 17,100 Inventories (FIFO method) Equipment (net-rema ining life 4 years) Patents (rema ining life 10 years) 48,000 13,000
Assets Parent Subsidiary Company P 37,400 Company P' 30,900 34,200 22,900 179,000 Cash Accounts receivable, net 9,100 Inventories 16,100 Equipment, net Patents 40,000 10,000 Total Assets P 267,000 P112,600 Liabilities and Equities Accounts Payable Bonds Payable Common stock, Pl0 par P 4,000 P6,600 100,000 50,000 15,000 100,000 Share Premium 15,000 Reta ined eamings Total Liabilities and Equities 48,000 41,000 P 267,000 P112,600 At the date of acquisition, all assets and liabilities of Subsidiary Company have book value approximately e their respective market values except the following asdetemined by appraisalas follows: P 17,100 Inventories (FIFO method) Equipment (net-rema ining life 4 years) Patents (rema ining life 10 years) 48,000 13,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
For the year ended December 31, the following results were given:
Dividend Paid Net Income
Parent Company P15,000 P30,200
Subsidiary Company 4,000 9,400
Using the proportionate basis or partial
A. P 10,600 C. P 12,010
B. P11,140 D. P 12,300
Note: Just use the information provided to solve the problem.
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