Company A has a subsidiary, which is accounted for in its separate financial statements using the cost method. At the endof 2016, Company A reports net income of P200,000 in its separate financial statements.Share in net income of subsidiary40,000Cash dividends paid by subsidiary and received by Company A35,000Increase in fair value of investment120,000Assuming it has no other subsidiaries and other transactions affecting the net income at a consolidated level,compute the net income of Company A at a consolidate level given the following additional information.

Given Information: Net Income of Company A = P200,000 Share in net income of Subsidiary = P40,000…

Assuming it has no other subsidiaries and other transactions affecting the net income at a consolidated level, compute the net income of Company A at a consolidate level given the following additional information.

Assuming it has no other subsidiaries and other transactions affecting the net income at a consolidated level, compute the net income of Company A at a consolidate level given the following additional information.

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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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

Company A has a subsidiary, which is accounted for in its separate financial statements using the cost method. At the end
of 2016, Company A reports net income of P200,000 in its separate financial statements.
Share in net income of subsidiary
40,000
Cash dividends paid by subsidiary and received by Company A
35,000
Increase in fair value of investment
120,000
Assuming it has no other subsidiaries and other transactions affecting the net income at a consolidated level,
compute the net income of Company A at a consolidate level given the following additional information.

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