Dysabel Corp. owns 80% of Marina, Inc.'s common stock. During 2020, Dysabel sold Marina P337,500 of inventory on the same terms as sales made to third parties. Marina sold all of the inventory purchased from Dysabel in 2020. The following information pertains to Marina and Dysabel's sales for 2020: Dysabel P1,350,000 540,000 P 810,000 Marina P945,000 472,500 P474,500 Sales. Cost of sales . What amount should Dysabel report as Cost of sales in its 2020 consolidated income statement? O 580,500 O 1,012,500 O 918,000 O 675,000

Dysabel Corp. owns 80% of Marina, Inc.'s common stock. During 2020, Dysabel sold Marina P337,500 of inventory on the same terms as sales made to third parties. Marina sold all of the inventory purchased from Dysabel in 2020. The following information pertains to Marina and Dysabel's sales for 2020: Dysabel P1,350,000 540,000 P 810,000 Marina P945,000 472,500 P474,500 Sales. Cost of sales . What amount should Dysabel report as Cost of sales in its 2020 consolidated income statement? O 580,500 O 1,012,500 O 918,000 O 675,000

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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On February 2, 2020, Groove Company purchased 15% of Pop Company's common stock for $54,00O. Pop's net income for the years ended December 31, 2020, and December 31, 2021, were $16,000 and $54,000, respectively. On July 30, 2020, Pop declared and paid a dividend of $66,500. On December 31, 2020, the fair value of the Pop stock owned by Groove had increased to $72,000. How much should Groove show in the 2020 income statement as income from this investment? Multiple Choice $18,000. $9,975. $24,000. $27,975.
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GG Co. had the following transactions with two subsidiaries, OO and RR during 2020: Sales of P105,000 to OO, Inc., with P31,500 gross profit, OO had P26,250 of this inventory on hand at year end. Purchases of raw materials totaling P420,000 from RR Corp., a wholly owned subsidiary. RR’s gross profit on the sale was P84,000. GG had P98,000 of this inventory remaining on December 31, 2020. Before eliminating entries, GG had combined current assets of P525,000. What amount should GG report in its December 31, 2020 consolidated financial position for current assets?
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