On January 1, 2021, ABC purchased 80% of the outstanding shares of DEF at a cost of P960,000. On that DEF had P600,000o worth of outstanding shares and P600,000 worth of accumulated profits. For 2021, AB had income of P336,000 from its own operations and paid dividends of P180,000. For 2021, DEF reported income of P64,000 and paid dividends of P36,000. All of the assets and liabilities of DEF have book values equal to their market value. On January 1, 2021, ABC sold equipment to DEF for P120,000. The book value the equipment on that was P144,000. The loss of P24,000 is reflected in the income of ABC indicated abo The equipment is expected to have a useful life of five years from the date of the sale. In the December 3 2011 acidionu

On January 1, 2021, ABC purchased 80% of the outstanding shares of DEF at a cost of P960,000. On that DEF had P600,000o worth of outstanding shares and P600,000 worth of accumulated profits. For 2021, AB had income of P336,000 from its own operations and paid dividends of P180,000. For 2021, DEF reported income of P64,000 and paid dividends of P36,000. All of the assets and liabilities of DEF have book values equal to their market value. On January 1, 2021, ABC sold equipment to DEF for P120,000. The book value the equipment on that was P144,000. The loss of P24,000 is reflected in the income of ABC indicated abo The equipment is expected to have a useful life of five years from the date of the sale. In the December 3 2011 acidionu

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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Question 47
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