How much is the consolidated profit in 2021?A. 301,000B. 336,000C. 310,000D. 320,000 On January 1, 2021, Masaya Co. issued equity instruments in exchange for 75% interest in Lungkots Co. Lungkots Co.'snet identifiable assets have carrying amount and fair value of P300,000 and P360,000, respectively. The difference isattributable to a building with a remaining useful life of 6 years.The December 31, 2021 statements of profit or loss of Masaya Co. and Lungkots Co. are summarized below:wwwaStatements of profit or lossFor the year ended December 31, 2021Masaya Co.Lungkots Co.Revenues1,200,000480,000(960,000)(400,000)Operating expensesProfit for the year240,00080,000

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How much is the consolidated profit in 2021? A. 301,000 B. 336,000 C. 310,000 D. 320,000

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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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

How much is the consolidated profit in 2021?

A. 301,000
B. 336,000
C. 310,000
D. 320,000

On January 1, 2021, Masaya Co. issued equity instruments in exchange for 75% interest in Lungkots Co. Lungkots Co.'s
net identifiable assets have carrying amount and fair value of P300,000 and P360,000, respectively. The difference is
attributable to a building with a remaining useful life of 6 years.
The December 31, 2021 statements of profit or loss of Masaya Co. and Lungkots Co. are summarized below:
wwwa
Statements of profit or loss
For the year ended December 31, 2021
Masaya Co.
Lungkots Co.
Revenues
1,200,000
480,000
(960,000)
(400,000)
Operating expenses
Profit for the year
240,000
80,000

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