ines Corporation has a branch in Manila and 70%-owned subsidiary, Choco Hills, Inc. in Davao. The following data shows Pines Corporation’s sales transactions during the year: * Pines Corporation billed the Manila branch P1,500,000 for merchandise shipped to the latter at a mark-up 50% above acquisition cost. The branch stored the merchandise and did not operate during the year. * Sold merchandise to unrelated parties at a gain of P800,000 * Sold merchandise to Darrel Asuncion, Pines Corporation’s controlling at a gain of P100,000 *Sold various merchandise to Choco Hills, Inc. at a gain of P200,000. Compute the total income of Pines Corporation subject to income tax
ines Corporation has a branch in Manila and 70%-owned subsidiary, Choco Hills, Inc. in Davao. The following data shows Pines Corporation’s sales transactions during the year: * Pines Corporation billed the Manila branch P1,500,000 for merchandise shipped to the latter at a mark-up 50% above acquisition cost. The branch stored the merchandise and did not operate during the year. * Sold merchandise to unrelated parties at a gain of P800,000 * Sold merchandise to Darrel Asuncion, Pines Corporation’s controlling at a gain of P100,000 *Sold various merchandise to Choco Hills, Inc. at a gain of P200,000. Compute the total income of Pines Corporation subject to income tax
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Pines Corporation has a branch in Manila and 70%-owned subsidiary, Choco Hills, Inc. in Davao. The following data shows Pines Corporation’s sales transactions during the year: * Pines Corporation billed the Manila branch P1,500,000 for merchandise shipped to the latter at a mark-up 50% above acquisition cost. The branch stored the merchandise and did not operate during the year. * Sold merchandise to unrelated parties at a gain of P800,000 * Sold merchandise to Darrel Asuncion, Pines Corporation’s controlling at a gain of P100,000 *Sold various merchandise to Choco Hills, Inc. at a gain of P200,000. Compute the total income of Pines Corporation subject to income tax
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