Income statement information for the year 2020 for Perena Corporation and its 60% ownedsubsidiary, Amihan Corporation is as follows:PerenaP450,000200,000P250,000125,000AmihanSalesP175,000Cost of Sales125,000P 50,000Gross profit .Operating expenses25,000Amihan's net incomeP 25,000Perena's separate incomeP125,000Intercompany sales for 2020 are upstream (from Amihan to Perena) and total P50,000. Perena'sDecember 31, 2019 and December 31, 2020 inventories contain unrealized profits of P2,500 andP5,000 respectively.The Consolidated cost of sales for 2020:280,000O 277,500O 275,000272,500

Inter company sales are the sales which take place between a parent and a subsidiary company.

Income statement information for the year 2020 for Perena Corporation and its 60% owned subsidiary, Amihan Corporation is as follows: Sales . Cost of Sales . Gross profit Operating expenses . Perena P450,000 200,000 P250,000 125,000 Amihan P175,000 125,000 P 50,000 25,000 P 25,000 Amihan's net income. Perena's separate income . P125,000 Intercompany sales for 2020 are upstream (from Amihan to Perena) and total P50,000. Perena's December 31, 2019 and December 31, 2020 inventories contain unrealized profits of P2,500 and P5,000 respectively. The Consolidated cost of sales for 2020: O 280,000 O 277,500 O 275,000 O 272,500

Income statement information for the year 2020 for Perena Corporation and its 60% owned subsidiary, Amihan Corporation is as follows: Sales . Cost of Sales . Gross profit Operating expenses . Perena P450,000 200,000 P250,000 125,000 Amihan P175,000 125,000 P 50,000 25,000 P 25,000 Amihan's net income. Perena's separate income . P125,000 Intercompany sales for 2020 are upstream (from Amihan to Perena) and total P50,000. Perena's December 31, 2019 and December 31, 2020 inventories contain unrealized profits of P2,500 and P5,000 respectively. The Consolidated cost of sales for 2020: O 280,000 O 277,500 O 275,000 O 272,500

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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