Samwell Corp. owns 100% of Sandor Corp.’s common stock. On January 2, 2019, Samwell sold to Sandor for P30,000 machinery with a carrying amount of P22,500. Sandor is depreciating the acquired machinery over a five year life by the straight-line method. The net adjustments to compute 2019 and 2020 Profit Attributable to Equity Holders of Parent or CNI Attributable to Controlling interests before income tax would be an increase (decrease) of:
Samwell Corp. owns 100% of Sandor Corp.’s common stock. On January 2, 2019, Samwell sold to Sandor for P30,000 machinery with a carrying amount of P22,500. Sandor is depreciating the acquired machinery over a five year life by the straight-line method. The net adjustments to compute 2019 and 2020 Profit Attributable to Equity Holders of Parent or CNI Attributable to Controlling interests before income tax would be an increase (decrease) of:
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter17: Business Tax Credits And The Alternative Minimum Tax
Section: Chapter Questions
Problem 7CE
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Samwell Corp. owns 100% of Sandor Corp.’s common stock. On January 2, 2019, Samwell sold to Sandor for P30,000 machinery with a carrying amount of P22,500. Sandor is depreciating the acquired machinery over a five year life by the straight-line method. The net adjustments to compute 2019 and 2020 Profit Attributable to Equity Holders of Parent or CNI Attributable to Controlling interests before income tax would be an increase (decrease) of:
2019 - (P6,000) ; 2020- P1,500
2019 - (P6,000) ; 2020- 0
2019 - (P7,500) ; 2020- P1,500
2019 - (P7,500) ; 2020- 0
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