Carlos Bakery owns 60 percent of the stocks of Zeus Products acquired several years ago at book values. On January 1, 2021, inventory reported by Carlos included 20,000 bags of flour purchased from Zeus at P90 per bag. By December 31, 2021, all of these had been baked into products and sold to customers by Carlos Bakery. There were no other transactions between them during 2021. Both Carlos and Zeus price their sales at cost plus 50% mark up for profit. Carlos reported net income from its own operations of P3,000,000 and Zeus reported net income of P2,500,000 in 2021. Compute the consolidated net income for 2021
Carlos Bakery owns 60 percent of the stocks of Zeus Products acquired several years ago at book values. On January 1, 2021, inventory reported by Carlos included 20,000 bags of flour purchased from Zeus at P90 per bag. By December 31, 2021, all of these had been baked into products and sold to customers by Carlos Bakery. There were no other transactions between them during 2021. Both Carlos and Zeus price their sales at cost plus 50% mark up for profit. Carlos reported net income from its own operations of P3,000,000 and Zeus reported net income of P2,500,000 in 2021. Compute the consolidated net income for 2021
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
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 2RE: Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of...
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![Carlos Bakery owns 60 percent of the stocks of Zeus Products acquired several years ago at book
values. On January 1, 2021, inventory reported by Carlos included 20,000 bags of flour purchased from
Zeus at P90 per bag. By December 31, 2021, all of these had been baked into products and sold to
customers by Carlos Bakery. There were no other transactions between them during 2021.
Both Carlos and Zeus price their sales at cost plus 50% mark up for profit. Carlos reported net income
from its own operations of P3,000,000 and Zeus reported net income of P2,500,000 in 2021.
Compute the consolidated net income for 2021](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F82a6ea62-62a1-4d74-81d6-40f717f2f650%2Fa0cc3e58-09ff-403a-a30e-e4863a5d10ef%2F5bwvmrg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Carlos Bakery owns 60 percent of the stocks of Zeus Products acquired several years ago at book
values. On January 1, 2021, inventory reported by Carlos included 20,000 bags of flour purchased from
Zeus at P90 per bag. By December 31, 2021, all of these had been baked into products and sold to
customers by Carlos Bakery. There were no other transactions between them during 2021.
Both Carlos and Zeus price their sales at cost plus 50% mark up for profit. Carlos reported net income
from its own operations of P3,000,000 and Zeus reported net income of P2,500,000 in 2021.
Compute the consolidated net income for 2021
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