Lorn Corporation purchased inventory from Dresser Corporation for P120,000 on September 20, 20x2, and resold 80% of the purchased inventory to unaffiliated companies prior to December 31, 20x2, for P140,000. Dresser produced the inventory sold to Lorn for P75,000. Lorn owns 70% of Dresser’s voting common stock. The companies had no other transactions during 20x2. What amount of consolidated net income will be assigned to the controlling interest for 20x2? A. P20,000 D. P45, 000B. P30, 800 E. 69, 200

Lorn Corporation purchased inventory from Dresser Corporation for P120,000 on September 20, 20x2, and resold 80% of the purchased inventory to unaffiliated companies prior to December 31, 20x2, for P140,000. Dresser produced the inventory sold to Lorn for P75,000. Lorn owns 70% of Dresser’s voting common stock. The companies had no other transactions during 20x2. What amount of consolidated net income will be assigned to the controlling interest for 20x2? A. P20,000 D. P45, 000B. P30, 800 E. 69, 200

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter8: Consolidated Tax Returns

Section: Chapter Questions

Problem 36P

See similar textbooks

Similar questions

Lorn Corporation purchased inventory from Dresser Corporation for P 120,000 on September 20, 20x2, and resold 80% of the purchased inventory to unaffiliated companies prior to December 31, 20x2, for P140,000. Dresser produced the inventory sold to Lorn for P75,000. Lorn owns 70% of Dresser’s voting common stock. The companies had no other transactions during 20x2. What amount of consolidated net income will be assigned to the controlling interest for 20x2? A. P20, 000 B. P30, 800 C. P44, 000 D. P45, 000 E. 69, 200 F. 80, 000
Lorn Corporation purchased inventory from Dresser Corporation for P 120,000 on September 20, 20x2, and resold 80% of the purchased inventory to unaffiliated companies prior to December 31, 20x2, for P140,000. Dresser produced the inventory sold to Lorn for P75,000. Lorn owns 70% of Dresser’s voting common stock. The companies had no other transactionsduring 20x2. 1. What amount of sales will be reported in the 20x2 consolidated income statement? A. P98,000 C. P140, 000B. P120, 000 D. P260, 000 2. What amount of cost of goods sold will be reported in the 20x2 consolidated income statement? A. P60,000 C. P96, 000B. P75, 000 D. P120, 000 E. P171, 000 3. What amount of consolidated net income will be assigned to the controlling interest for 20x2? A. P20,000 D. P45, 000B. P30, 800 E. 69, 200C. P44, 000 F. 80, 000
Lorn Corporation purchased inventory from Dresser Corporation for P 120,000 on September 20, 20x2, and resold 80% of the purchased inventory to unaffiliated companies prior to December 31, 20x2, for P140,000. Dresser produced the inventory sold to Lorn for P75,000. Lorn owns 70% of Dresser’s voting common stock. The companies had no other transactions during 20x2. What amount of cost of goods sold will be reported in the 20x2 consolidated income statement? A. P60, 000 B. P75, 000 C. P96, 000 D. P120, 000 E. P171, 000
Lorn Corporation purchased inventory from Dresser Corporation for P120,000 on September 20, 20x2, and resold 80% of the purchased inventory to unaffiliated companies prior to December 31, 20x2, for P140,000. Dresser produced the inventory sold to Lorn for P75,000. Lorn owns 70% of Dresser’s voting common stock. The companies had no other transactions during 20x2.What amount of sales will be reported in the 20x2 consolidated income statement? A. P98,000 C. P140, 000B. P120, 000 D. P260, 000
Lorn Corporation purchased inventory from Dresser Corporation for P120,000 on September 20, 20x2, and resold 80% of the purchased inventory to unaffiliated companies prior to December 31, 20x2, for P140,000. Dresser produced the inventory sold to Lorn for P75,000. Lorn owns 70% of Dresser’s voting common stock. The companies had no other transactions during 20x2. What inventory balance will be provided by the consolidated entity on December 31, 20x2? A. P15,000 C. P24, 000B. P16, 800 D. P39, 000
Lorn Corporation purchased inventory from Dresser Corporation for P 120,000 on September 20, 20x2, and resold 80% of thepurchased inventory to unaffiliated companies prior to December 31, 20x2, for P140,000. Dresser produced the inventorysold to Lorn for P75,000. Lorn owns 70% of Dresser’s voting common stock. The companies had no other transactionsduring 20x2.4. What inventory balance will be provided by the consolidated entity on December 31, 20x2? A. P15,000 C. P24, 000B. P16, 800 D. P39, 000
Lorn Corporation purchased inventory from Dresser Corporation for P 120,000 on September 20, 20x2, and resold 80% of the purchased inventory to unaffiliated companies prior to December 31, 20x2, for P140,000. Dresser produced the inventory sold to Lorn for P75,000. Lorn owns 70% of Dresser’s voting common stock. The companies had no other transactions during 20x2. What inventory balance will be provided by the consolidated entity on December 31, 20x2? A. P15, 000 B. P16, 800 C. P24, 000 D. P39, 000
Lorn Corporation purchased inventory from Dresser Corporation for P120,000 on September 20, 20x2, and resold 80% of the purchased inventory to unaffiliated companies prior to December 31, 20x2, for P140,000. Dresser produced the inventory sold to Lorn for P75,000. Lorn owns 70% of Dresser’s voting common stock. The companies had no other transactions during 20x2. What amount of cost of goods sold will be reported in the 20x2 consolidated income statement? A. P60,000 C. P96, 000B. P75, 000 D. P120, 000 E. P171, 000
Lorn Corporation purchased inventory from Dresser Corporation for P 120,000 on September 20, 20x2, and resold 80% of the purchased inventory to unaffiliated companies prior to December 31, 20x2, for P140,000. Dresser produced the inventory sold to Lorn for P75,000. Lorn owns 70% of Dresser’s voting common stock. The companies had no other transactions during 20x2 What amount of sales will be reported in the 20x2 consolidated income statement? A. P98, 000 B. P120, 000 C. P140, 000 D. P260, 000
Sharpe electronics corp holds a 75% stake in worldwide electronics corp. On Oct 29, 20x4, from a nonaffiliated. Worldwide sold the inventory to sharpe for $10000 on Nov.15, 20X4. Sharpe resold this inventory to a non affiliate on Jan 25, 20X5. Assuming that sharpe had separate operating income of $300,000 and worldwide had net income of 350000 for 20X4, Calculate worldwide realized income for 20X4.
Bisharp Corporation owns 80% of Rufflet, Inc. common stock. During 20A, Bisharp sold to Rufflet inventory of P250,000 on the same terms as sales made to third parties. Rufflet sold all of the inventory purchased from Bisharp in 20A. The following information pertains to Bisharp and Rufflet's sales for 20A, respectively: Sales P1,000,000 and P700,000; Cost of merchandise sold P400,000 and P350,000. What amount should Bisharp report as cost of merchandise sold in its 20A consolidated income statement?
BB Company purchased 60 percent ownership of KK Corporation in 20x8. On May 10,20x9, KK purchased inventory from BB for P 60,000. KK sold all of the inventory to an unaffiliated company for P86,000 on November 10,20x9. BB produced the inventory sold to KK for P47,000. The companies had no other transaction during 20x9. What amount of sales will be reported in the 20x9 consolidated income statement?