date the book at the time of values except c Inventory Land Equipment The remaining useful life. Durin P100,000. What sophisticated ex P 42,00 b. P 70,00 2. The equipment depreciation of P320,000 at the what is the works a. a. P20,000 de b. P20,000 cre 73. The equipment depreciation of the
date the book at the time of values except c Inventory Land Equipment The remaining useful life. Durin P100,000. What sophisticated ex P 42,00 b. P 70,00 2. The equipment depreciation of P320,000 at the what is the works a. a. P20,000 de b. P20,000 cre 73. The equipment depreciation of the
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: AFAR
Transcribed Image Text:P72,000.
b.
171 On January 1, 20x8, Promo, Inc. purchased 70% of Set Corporation for P469,000. On that
date the book value of the net assets of Set totaled P500,000. Based on the appraisal done
at the time of the purchase, all assets and liabilities had book values equal to their fair
d.
P76,000.
values except as follows:
Book Value
Fair Value
Inventory
Land
P100,000
P120,000
Equipment (useful life 4 years)
75,000
125,000
85,000
165,000
The remaining excess of cost over book value was allocated to a patent with a 10-year
useful life. During 20x8 Promo reported net income of P200,000 and Set had net income of
P100,000. What is consolidated net income if Promo recognizes income from Set using the
sophisticated equity method?
P 42,000
P 70,000
P 200,000
P 270,000
a.
C.
b.
d.
172. The equipment of a subsidiary acquired January 1, 20x5 has a cost and accumulated
depreciation of P300,000 and P170,000, respectively. The equipment is appraised at
P320,000 at the acquisition date. Assuming the equipment has a 10-year remaining life,
what is the worksheet elimination #1 adjustment to the equipment account in 20x7?
a. P20,000 debit
b. P20,000 credit
С.
P190,000 debit
d. P 190,000 credit
173. The equipment of a subsidiary acquired January 1, 20x5 has a cost and accumulated
depreciation of P300,000 and P170,000, respectively. The equipment is appraised at
P320,000 at the acquisition date. Assuming the equipment has a 10-year remaining life,
what is the worksheet elimination #1 adjustment to the accumulated depreciation account
in 20x7?
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