Problem 5 On January 1, 2021, Pe Inc. purchased Ra Corp. for P1,500,000 for 100% ownership of its common stocks. An P80,000 excess was identified in the purchase price, which was attributable to an equipment with a net book value of P400,000 and remaining useful life of 8 years as of date. On December 31, 2022, the equipment identified at acquisition date that was attributed to the excess was sold to an unrelated party for P400,000. How much gain from the sale of equipment must be reported in the consolidated income statement of Pe and Ra?

Problem 5 On January 1, 2021, Pe Inc. purchased Ra Corp. for P1,500,000 for 100% ownership of its common stocks. An P80,000 excess was identified in the purchase price, which was attributable to an equipment with a net book value of P400,000 and remaining useful life of 8 years as of date. On December 31, 2022, the equipment identified at acquisition date that was attributed to the excess was sold to an unrelated party for P400,000. How much gain from the sale of equipment must be reported in the consolidated income statement of Pe and Ra?

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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