Income statement information for the year 2020 for Perena Corporation and its 60% owned subsidiary, Amihan Corporation is as follows: Perena Amihan Sales P450,000 200,000 P175,000 125,000 P 50,000 Cost of Sales Gross profit P250,000 125,000 Operating expenses Amihan's net income. Perena's separate income . 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:
Income statement information for the year 2020 for Perena Corporation and its 60% owned subsidiary, Amihan Corporation is as follows: Perena Amihan Sales P450,000 200,000 P175,000 125,000 P 50,000 Cost of Sales Gross profit P250,000 125,000 Operating expenses Amihan's net income. Perena's separate income . 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:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Perena Corporation
A. 272,500
B. 280,000
C. 275,000
D. 277,500
Transcribed Image Text:Income statement information for the year 2020 for Perena Corporation and its 60% owned
subsidiary, Amihan Corporation is as follows:
Perena
Amihan
Sales .
P450,000
200,000
P250,000
125,000
P175,000
125,000
P 50,000
Cost of Sales
Gross profit .
Operating expenses
25,000
Amihan's net income.
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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