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?
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 24E
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![O Quiz: BSA 3203 BBF - Midterm O x
A ue.instructure.com/courses/24511/quizzes/128777/take/questions/2083785
=S O
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 P400,00O.
How much gain from the sale of equipment must be reported in the consolidated
income statement of Pe and Ra?
11:52 AM
O Type here to search
33°C Light rain
A ENG
29/03/2022](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3bc0784b-4ba1-4d0e-bf43-e213c8e7d59d%2F79a0a33b-d34e-49d2-a95b-357d5f8202f7%2F77yfv3m_processed.png&w=3840&q=75)
Transcribed Image Text:O Quiz: BSA 3203 BBF - Midterm O x
A ue.instructure.com/courses/24511/quizzes/128777/take/questions/2083785
=S O
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 P400,00O.
How much gain from the sale of equipment must be reported in the consolidated
income statement of Pe and Ra?
11:52 AM
O Type here to search
33°C Light rain
A ENG
29/03/2022
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