Primrose Corp purchased a 70 percent interest in Starman Corp. on January 1, 2020 for P15,000,000 when Starman's stockholder's equity consisted on P3,000,000 common stock, P10,000,000 Additional paid in Capital, and retained earnings of P2,000,000. Income and dividend information for Starman 2020, 2021 and 2022 are as follows: Note: Any excess is allocated to depreciable assets and is to be amortized over 20 years. 2020 Net Income - 1,000,000 Dividends - 400,000 2021 Net Income 200,000 Dividends 100,000 2022 Net Income (500,000) Dividends - Zero (N/a) Primrose reported separate income of P12,000,000 for 2022. Consolidated Retained earnings for 2022 is:

Primrose Corp purchased a 70 percent interest in Starman Corp. on January 1, 2020 for P15,000,000 when Starman's stockholder's equity consisted on P3,000,000 common stock, P10,000,000 Additional paid in Capital, and retained earnings of P2,000,000. Income and dividend information for Starman 2020, 2021 and 2022 are as follows: Note: Any excess is allocated to depreciable assets and is to be amortized over 20 years. 2020 Net Income - 1,000,000 Dividends - 400,000 2021 Net Income 200,000 Dividends 100,000 2022 Net Income (500,000) Dividends - Zero (N/a) Primrose reported separate income of P12,000,000 for 2022. Consolidated Retained earnings for 2022 is:

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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