On January 1, 20x2, Gold Company purchased a computer with an expected economic life of five years. On January 1, 20x4, Gold sold the computer to TLK Corporation and recorded the following entry:       Cash                                         39,000      Accumulated Depreciation       16,000                    Computer Equipment             40,000                    Gain on sale of equipment     15,000 TLK Corporation holds 60 percent of Gold’s voting shares. Gold reported net income of P45,000, and TLK reported income from its own operations of P85,000 for 20x4. There is no change in the estimated life of the equipment as a result of the inter-corporate transfer. The consolidated net income for 20x4 will amount to: A. 106,000        C. 120,000 B.112,000         D. 130,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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On January 1, 20x2, Gold Company purchased a computer with an expected economic life of five years. On January 1, 20x4, Gold sold the computer to TLK Corporation and recorded the following entry:
      Cash                                         39,000
     Accumulated Depreciation       16,000
                   Computer Equipment             40,000
                   Gain on sale of equipment     15,000

TLK Corporation holds 60 percent of Gold’s voting shares. Gold reported net income of P45,000, and TLK reported income from its own operations of P85,000 for 20x4. There is no change in the estimated life of the equipment as a result of the inter-corporate transfer.

The consolidated net income for 20x4 will amount to:

A. 106,000        C. 120,000
B.112,000         D. 130,000

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