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 subsidiary40,000Cash dividend paid by subsidiary and received by Company A35,000Increase in fair value of investment120,000Assuming it has no other subsidiaries and other transactions affecting net income at a consolidated level, compute the net income of Company A at a consolidate level.

The portion of income which is sustained by the business organization after deducting the operating…

Answered: compute the net income of Company A at…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

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 dividend 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 net income at a consolidated level, compute the net income of Company A at a consolidate level.

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions