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Push-down AcCounting Use the following informat On 4/1/x6, Pullco acquire- 20x6. Strapco reported the

Push-down AcCounting Use the following informat On 4/1/x6, Pullco acquire- 20x6. Strapco reported the

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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Subject: AFAR

#185

Push-down Accounting Use the following information for questions 184 and 185: On 4/1/x6, Pullco acquired 100% of Strapco's outstanding common stock for P500,000 cash. For 20x6. Strapco reported the following items: First quarter Remainder of year Net Income P 40,000 150,000 P190.000 Dividends Declared P 30,000 90,000 P120.000 184. In addition, amortization of cost in excess of book value for 20x6 was P20,000. Assume non- push-down accounting is used. Under the equity method, what is the carrying value of the Investment account at 12/31/x6? P500,000 a. d. P570,000 e. P630,000 b. P540,000 P550,000 = 540k %3D C. 185. In addition, amortization of cost in excess of book value for 20x6 was P20,000. AssSume non- push-down acCounting is used. Under the cost method, what is the carying value of the Investment account at 12/31/x6?. P500,000 P570,000 P630,000 d. a. b. P540,000 P550,000 e. C.
Transcribed Image Text:Push-down Accounting Use the following information for questions 184 and 185: On 4/1/x6, Pullco acquired 100% of Strapco's outstanding common stock for P500,000 cash. For 20x6. Strapco reported the following items: First quarter Remainder of year Net Income P 40,000 150,000 P190.000 Dividends Declared P 30,000 90,000 P120.000 184. In addition, amortization of cost in excess of book value for 20x6 was P20,000. Assume non- push-down accounting is used. Under the equity method, what is the carrying value of the Investment account at 12/31/x6? P500,000 a. d. P570,000 e. P630,000 b. P540,000 P550,000 = 540k %3D C. 185. In addition, amortization of cost in excess of book value for 20x6 was P20,000. AssSume non- push-down acCounting is used. Under the cost method, what is the carying value of the Investment account at 12/31/x6?. P500,000 P570,000 P630,000 d. a. b. P540,000 P550,000 e. C.
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