PROBLEM 4-8 On January 1, 2020, P Company acquired 80% of S Company for P2,000,000. The fair value of identifiable net assets is P1,800,000. NCI is measured at fair value. During 2020, P Company ships merchandise to S Company costing P1,000, 000 at 20% above cost. Additional data are as follows: P Company 5,500,000 3,200,000 650,000 S Company 2,500,000 1,600,000 300,000 Sales Cost of Sales Operating Expense The ending inventories of S Company includes merchandise from P Company amounting P60,000. Impaiment of goodwill is P20,000. How much is the consolidated gross profit?

PROBLEM 4-8 On January 1, 2020, P Company acquired 80% of S Company for P2,000,000. The fair value of identifiable net assets is P1,800,000. NCI is measured at fair value. During 2020, P Company ships merchandise to S Company costing P1,000, 000 at 20% above cost. Additional data are as follows: P Company 5,500,000 3,200,000 650,000 S Company 2,500,000 1,600,000 300,000 Sales Cost of Sales Operating Expense The ending inventories of S Company includes merchandise from P Company amounting P60,000. Impaiment of goodwill is P20,000. How much is the consolidated gross profit?

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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Question

PROBLEM 4-8
On January 1, 2020, P Company acquired 80% of S Company for P2,000,000. The fair value
of identifiable net assets is P1,800,000. NCI is measured at fair value. During 2020, P Company
ships merchandise to S Company costing P1,000, 000 at 20% above cost. Additional data are
as follows:
P Company
5,500,000
3,200,000
650,000
S Company
2,500,000
1,600,000
300,000
Sales
Cost of Sales
Operating Expense
The ending inventories of S Company includes merchandise from P Company amounting t
P60,000. Impairment of goodwill is P20,000.
How much is the consolidated gross profit?

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