On January 2, 2022, S Company acquired 80% of the stocks of LCompany for P2,000,000. On this date, L Company had P1,000.000 ofShare Capital and P800,000 of Retained Earnings. The carrying values ofthe identifiable assets and liabilities of L are equal to their fair values.During the year. L ships merchandise to S costing P800.000 at 25%above cost.At the end of the year, records show the following:S Company L Company120,000Inv. beg350,000Inv. end400,000200,000Sales5,500,000 2,500,0003,250,000 1,680,000650,000PurchasesOperating Exp.Dividends paid300,000500,000350,000The ending inventory of S includes merchandise from L amounting toP50,000. The reported impairment of goodwill in 2022 is P20,000. Theparent opted to measure NCI at fair value.How much is the Consolidated Inventory on December 31, 2022?a.590,000b.560,000c.587,500d.600,000

If intercompany transfer of stock is remained as unsold on date of consolidation,then unrealized…

On January 2, 2022, S Company acquired 80% of the stocks of L Company for P2,000,000. On this date, L Company had P1,000.000 of Share Capital and P800,000 of Retained Earnings. The carrying values of the identifiable assets and liabilities of L are equal to their fair values. During the year. L ships merchandise to S costing P800.000 at 25% above cost. At the end of the year, records show the following: S Company L Company Inv. beg Inv. end 350,000 120,000 400,000 200,000 Sales 5,500,000 2,500,000 Purchases 3,250,000 1,680,000 Operating Exp. Dividends paid 650,000 300,000 350,000 500,000 The ending inventory of S includes merchandise from L amounting to P50,000. The reported impairment of goodwill in 2022 is P20,000. The parent opted to measure NCI at fair value. How much is the Consolidated Inventory on December 31, 2022? a.590,000 b.560,000 c.587,500 d.600,000

On January 2, 2022, S Company acquired 80% of the stocks of L Company for P2,000,000. On this date, L Company had P1,000.000 of Share Capital and P800,000 of Retained Earnings. The carrying values of the identifiable assets and liabilities of L are equal to their fair values. During the year. L ships merchandise to S costing P800.000 at 25% above cost. At the end of the year, records show the following: S Company L Company Inv. beg Inv. end 350,000 120,000 400,000 200,000 Sales 5,500,000 2,500,000 Purchases 3,250,000 1,680,000 Operating Exp. Dividends paid 650,000 300,000 350,000 500,000 The ending inventory of S includes merchandise from L amounting to P50,000. The reported impairment of goodwill in 2022 is P20,000. The parent opted to measure NCI at fair value. How much is the Consolidated Inventory on December 31, 2022? a.590,000 b.560,000 c.587,500 d.600,000

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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