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rporation acquired 70% of time when

rporation acquired 70% of time when

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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Intercompany sales from P to S for 2004 and 2005 are summarized Separate incomes of P Corporation and S Co. for 2005 are as at a time when S Co.'s book values and fair values were equal. P Corporation acquired 70% of the voting common shares of S Co. Sales Cost of goods sold Operating expenses Separate incomes P Corporation P 700,000 400,000 120,000 P 180,000 S Corporation P 400,000 200,000 100,000 P 100,000 as follows: Unsold at Selling price year- end 40% Cost Intercompany sales - 2004 P 250,000 P 390,000 Intercompany sales - 2005 175,000 50% 275,000 ww 12) The 2005 consolidated statement of comprehensive income wll show sales revenue and: a. P825,000 b. P900,000 c. P750,000 d. P625,000 13) The 2005 consolidated statement of comprehensive income will show cost of goods sold of: • a. P319,000 b. P340,000 c. P350,000 d. P400,000
Transcribed Image Text:Intercompany sales from P to S for 2004 and 2005 are summarized Separate incomes of P Corporation and S Co. for 2005 are as at a time when S Co.'s book values and fair values were equal. P Corporation acquired 70% of the voting common shares of S Co. Sales Cost of goods sold Operating expenses Separate incomes P Corporation P 700,000 400,000 120,000 P 180,000 S Corporation P 400,000 200,000 100,000 P 100,000 as follows: Unsold at Selling price year- end 40% Cost Intercompany sales - 2004 P 250,000 P 390,000 Intercompany sales - 2005 175,000 50% 275,000 ww 12) The 2005 consolidated statement of comprehensive income wll show sales revenue and: a. P825,000 b. P900,000 c. P750,000 d. P625,000 13) The 2005 consolidated statement of comprehensive income will show cost of goods sold of: • a. P319,000 b. P340,000 c. P350,000 d. P400,000
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