aste Company owns an 80% controlling interest in the Bastion Company. Bastion regularly sells merchandise to Baste, which then sold to outside parties. The gross profit on all such sales is 40%. On January 1, 2019, Baste sold land and a building to Bastion. The value of the parcel is 20% to land and 80% to structures. The data are the following: Baste Bastion Internally generated net income, 2019 P1,560,000 P750,000 Internally generated net income, 2020 10,320,000 705,000 Intercompany merchandise sales, 2019 300,000 Intercompany merchandise sales, 2020 360,000 Intercompany inventory, December 31, 2019 45,000 Intercompany inventory, December 31, 2020 60,000 Cost of real estate sold on January 1, 2019 1,800,000 Sales price of real estate on January 1, 2019 2,400,000 Depreciable life of building 20 years For 2019, what is the consolidated comprehensive income attributable to controlling interest? a. 1,575,000 b. 1,597,500 c. 1,569,600 d. 1,875,000
aste Company owns an 80% controlling interest in the Bastion Company. Bastion regularly
sells merchandise to Baste, which then sold to outside parties. The gross profit on all such
sales is 40%. On January 1, 2019, Baste sold land and a building to Bastion. The value of the
parcel is 20% to land and 80% to structures. The data are the following:
Baste Bastion
Internally generated net income, 2019 P1,560,000 P750,000
Internally generated net income, 2020 10,320,000 705,000
Intercompany merchandise sales, 2019 300,000
Intercompany merchandise sales, 2020 360,000
Intercompany inventory, December 31, 2019 45,000
Intercompany inventory, December 31, 2020 60,000
Cost of real estate sold on January 1, 2019 1,800,000
Sales price of real estate on January 1, 2019 2,400,000
For 2019, what is the consolidated comprehensive income attributable to controlling
interest?
a. 1,575,000
b. 1,597,500
c. 1,569,600
d. 1,875,000
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