Compute for the consolidated net income. ABC Corp. Acquired a 70% interest in GHI Corp on January 2, 2021 forP936,000 when GHI's net assets had a book value and fair value of P1,580,000.During 2021, ABC sold inventory items that cost P1,560,000 to GHI forP2,080,000 and GHI's inventory at December 31, 2021 included 1/2 of themerchandise.DEF also sold to ABC an inventory for P30,000 with a cost of P25,000,70% were sold to unaffiliated customers. ABC Corp. Reported separate incomefrom its own operation of P1,170,000 and GHI reported a net loss of P390,000.Compute for the consolidated net income.

The consolidated net income is the combined income of both the parent company and its subsidiaries.…

Answered: Compute for the consolidated net income

Business

Accounting

Compute for the consolidated net income

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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Question

Compute for the consolidated net income.

ABC Corp. Acquired a 70% interest in GHI Corp on January 2, 2021 for
P936,000 when GHI's net assets had a book value and fair value of P1,580,000.
During 2021, ABC sold inventory items that cost P1,560,000 to GHI for
P2,080,000 and GHI's inventory at December 31, 2021 included 1/2 of the
merchandise.
DEF also sold to ABC an inventory for P30,000 with a cost of P25,000,
70% were sold to unaffiliated customers. ABC Corp. Reported separate income
from its own operation of P1,170,000 and GHI reported a net loss of P390,000.
Compute for the consolidated net income.

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