LALA Inc. owns 80% of outstanding stocks of LILI Company purchased at book value. During the year 2016, the following transactions • On July 1, 2016, LALA sold equipment, carried in its books at P108,000, to LILI for P126,000 cash. This equipment was acquired by LALA last July 1, 2015 for P120,000. • On August 30, 2016, LALA Inc. acquired the furniture of LILI Company for P250,000 in cash. This was carried in the books of LILI at P265,000. Useful life of this furniture at the time of sale was five years. • On November 8, 2016, LILI sold land to LALA which earned it P235,000 The land was reported in the books of LILI at P835,000. Net income presented in the books of LALA and LILI amounted to P820,000 and P350,250, respectively. How much is the adjustment on the furniture net account balance in the December 31, 2016 consolidated financial statements? Increase (Decrease)

LALA Inc. owns 80% of outstanding stocks of LILI Company purchased at book value. During the year 2016, the following transactions • On July 1, 2016, LALA sold equipment, carried in its books at P108,000, to LILI for P126,000 cash. This equipment was acquired by LALA last July 1, 2015 for P120,000. • On August 30, 2016, LALA Inc. acquired the furniture of LILI Company for P250,000 in cash. This was carried in the books of LILI at P265,000. Useful life of this furniture at the time of sale was five years. • On November 8, 2016, LILI sold land to LALA which earned it P235,000 The land was reported in the books of LILI at P835,000. Net income presented in the books of LALA and LILI amounted to P820,000 and P350,250, respectively. How much is the adjustment on the furniture net account balance in the December 31, 2016 consolidated financial statements? Increase (Decrease)

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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