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Pol Corp. acquired 80% of Gas Corp. on January 1, 2020.  Pol Corp. purchased inventory for P280,000 on April 1, 2020 and sold it to Gas Corp. for P380,000 on June 1, 2020.  Gas Corp. still holds the inventory at the end of the year, and determines that its market value is P328,000 at that time.  Gas Corp. writes the inventory down from P380,000 to P328,000 on December 31, 2020.  What amount of inventory should be eliminated in the consolidated working paper for 2020?*   a. P 48,000 b. P 56,000 c. P 60,000 d. P 52,000

Pol Corp. acquired 80% of Gas Corp. on January 1, 2020.  Pol Corp. purchased inventory for P280,000 on April 1, 2020 and sold it to Gas Corp. for P380,000 on June 1, 2020.  Gas Corp. still holds the inventory at the end of the year, and determines that its market value is P328,000 at that time.  Gas Corp. writes the inventory down from P380,000 to P328,000 on December 31, 2020.  What amount of inventory should be eliminated in the consolidated working paper for 2020?*   a. P 48,000 b. P 56,000 c. P 60,000 d. P 52,000

FINANCIAL ACCOUNTING
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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Pol Corp. acquired 80% of Gas Corp. on January 1, 2020.  Pol Corp. purchased inventory for P280,000 on April 1, 2020 and sold it to Gas Corp. for P380,000 on June 1, 2020.  Gas Corp. still holds the inventory at the end of the year, and determines that its market value is P328,000 at that time.  Gas Corp. writes the inventory down from P380,000 to P328,000 on December 31, 2020.  What amount of inventory should be eliminated in the consolidated working paper for 2020?*

 

a. P 48,000

b. P 56,000

c. P 60,000

d. P 52,000

thanks for answering!

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