Income statement information for the year 2020 for Perena Corporation and its 60% owned subsidiary, Amihan Corporation is as follows: Perena P450,000 _ 200,000 P250,000 Amihan P175,000 125,000 P 50,000 Sales. Cost of Sales. Gross profit . Operating expenses Amihan's net income. Perena's separate income 125,000 25,000 P 25,000 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:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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a. 272,500

b. 275,000

c. 277,500

d. 280,000

Income statement information for the year 2020 for Perena Corporation and its 60% owned
subsidiary, Amihan Corporation is as follows:
Amihan
P175,000
125,000
P 50,000
Perena
Sales .
P450,000
200,000
P250,000
Cost of Sales
Gross profit .
Operating expenses
Amihan's net income.
125,000
25,000
P 25,000
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:
Transcribed Image Text:Income statement information for the year 2020 for Perena Corporation and its 60% owned subsidiary, Amihan Corporation is as follows: Amihan P175,000 125,000 P 50,000 Perena Sales . P450,000 200,000 P250,000 Cost of Sales Gross profit . Operating expenses Amihan's net income. 125,000 25,000 P 25,000 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:
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