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On January 2, 2021, ABC Co. Acquired all of DEF's ordinary shares for P1,800,000, On that date, the fair values of DEF's assets and liabilities equalled their carrying amounts of P1,980,000 and P480,000 respectively. During 2021, DEF paid cash dividends of P30,000. Selected information from the separate statements of financial position and statements of income of ABC and DEF as of December 31, 2021 and for the year ended as follows: АВС DEF Operating Income Income from Subsidiary 600,000 30,000 300,000 Net Income 630,000 210,000 Investment in Subsidiary 1,800,000 1,050,000 3,930,000 Accumulated Profits 840,000 Shareholders' Equity 1,680,000 Compute for the consolidated accumulated profits.

On January 2, 2021, ABC Co. Acquired all of DEF's ordinary shares for P1,800,000, On that date, the fair values of DEF's assets and liabilities equalled their carrying amounts of P1,980,000 and P480,000 respectively. During 2021, DEF paid cash dividends of P30,000. Selected information from the separate statements of financial position and statements of income of ABC and DEF as of December 31, 2021 and for the year ended as follows: АВС DEF Operating Income Income from Subsidiary 600,000 30,000 300,000 Net Income 630,000 210,000 Investment in Subsidiary 1,800,000 1,050,000 3,930,000 Accumulated Profits 840,000 Shareholders' Equity 1,680,000 Compute for the consolidated accumulated profits.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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a) 1,860,000
b) 2,040,000
c) 2,670,000
d) 2,070,000

On January 2, 2021, ABC Co. Acquired all of DEF's ordinary shares for P1,800,000. On that date, the fair values of DEF's assets and liabilities equalled their carrying amounts of P1,980,000 and P480,000 respectively. During 2021, DEF paid cash dividends of P30,000. Selected information from the separate statements of financial position and statements of income of ABC and DEF as of December 31, 2021 and for the year ended as follows: ABC DEF Operating Income Income from Subsidiary 600,000 300,000 30,000 Net Income 630,000 210,000 Investment in Subsidiary Accumulated Profits 1,800,000 1,050,000 840,000 Shareholders' Equity 3,930,000 1,680,000 Compute for the consolidated accumulated profits.
Transcribed Image Text:On January 2, 2021, ABC Co. Acquired all of DEF's ordinary shares for P1,800,000. On that date, the fair values of DEF's assets and liabilities equalled their carrying amounts of P1,980,000 and P480,000 respectively. During 2021, DEF paid cash dividends of P30,000. Selected information from the separate statements of financial position and statements of income of ABC and DEF as of December 31, 2021 and for the year ended as follows: ABC DEF Operating Income Income from Subsidiary 600,000 300,000 30,000 Net Income 630,000 210,000 Investment in Subsidiary Accumulated Profits 1,800,000 1,050,000 840,000 Shareholders' Equity 3,930,000 1,680,000 Compute for the consolidated accumulated profits.
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