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) 1,550,000 3,550,000 1,850,000 3,250,000 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? A. 1,550,000 B. 3,550,000 C. 1,850,000 D. 3,250,000 based on the information above, In the consolidated statement of comprehensive income for the year ended December 31, 2021, how much is the consolidated net income attributable to the controlling interest? 1,830,000 1,980,000 1,760,000 1,860,000
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)
1,550,000
3,550,000
1,850,000
3,250,000
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?
A. 1,550,000
B. 3,550,000
C. 1,850,000
D. 3,250,000
based on the information above, In the consolidated statement of comprehensive
income for the year ended December 31, 2021, how much is the consolidated net
income attributable to the controlling interest?
1,830,000
1,980,000
1,760,000
1,860,000
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