On January 1, 2021, PCO purchased 70% ownership of SCO which resulted to a gain on acquisition of P100,000. Net assets of SCO were fairly valued except for inventory which was understated by P1,500,000. A third of these inventories remained unsold as of the end of the calendar year. The operations of the two companies for 2021 are as follows: PCO SCO Sales P3,100,000 P2,600,000 (COGS) (1,300,000) (1,250,000) Gross profit 1,800,000 1,350,000 (OPEX) (200,000) (150,000) Other income 0 200,000 (Other expenses) (120,000) 0 Net income P1,480,000 P 400,000 In the consolidated statement of comprehensive income for the year ended December 31, 2021, how much is the cost of goods sold? Group of answer choices a.1,850,000 b.3,550,000 c.1,550,000 d.3,250,000
On January 1, 2021, PCO purchased 70% ownership of SCO which resulted to a gain on acquisition of P100,000. Net assets of SCO were fairly valued except for inventory which was understated by P1,500,000. A third of these inventories remained unsold as of the end of the calendar year. The operations of the two companies for 2021 are as follows: PCO SCO Sales P3,100,000 P2,600,000 (COGS) (1,300,000) (1,250,000) Gross profit 1,800,000 1,350,000 (OPEX) (200,000) (150,000) Other income 0 200,000 (Other expenses) (120,000) 0 Net income P1,480,000 P 400,000 In the consolidated statement of comprehensive income for the year ended December 31, 2021, how much is the cost of goods sold? Group of answer choices a.1,850,000 b.3,550,000 c.1,550,000 d.3,250,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On January 1, 2021, PCO purchased 70% ownership of SCO which resulted to a gain on acquisition of P100,000. Net assets of SCO were fairly valued except for inventory which was understated by P1,500,000. A third of these inventories remained unsold as of the end of the calendar year.
The operations of the two companies for 2021 are as follows:
|
|
PCO |
SCO |
|
Sales |
P3,100,000 |
P2,600,000 |
|
(COGS) |
(1,300,000) |
(1,250,000) |
|
Gross profit |
1,800,000 |
1,350,000 |
|
(OPEX) |
(200,000) |
(150,000) |
|
Other income |
0 |
200,000 |
|
(Other expenses) |
(120,000) |
0 |
|
Net income |
P1,480,000 |
P 400,000 |
In the consolidated statement of comprehensive income for the year ended December 31, 2021, how much is the cost of goods sold?
Group of answer choices
a.1,850,000
b.3,550,000
c.1,550,000
d.3,250,000
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