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 ofP22,500. Sandor is depreciating the acquired machinery over a five year life bythe straight-line method. The net adjustments to compute 2019 and 2020 ProfitAttributable to Equity Holders of Parent or CNI Attributable to Controllinginterests before income tax would be an increase (decrease) of: A. 2019 - (P7,500) ; 2020- P1,500B. 2019 - (P7,500) ; 2020- 0C. 2019 - (P6,000) ; 2
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 ofP22,500. Sandor is depreciating the acquired machinery over a five year life bythe straight-line method. The net adjustments to compute 2019 and 2020 ProfitAttributable to Equity Holders of Parent or CNI Attributable to Controllinginterests before income tax would be an increase (decrease) of: A. 2019 - (P7,500) ; 2020- P1,500B. 2019 - (P7,500) ; 2020- 0C. 2019 - (P6,000) ; 2
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 11P
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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
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:
A. 2019 - (P7,500) ; 2020- P1,500
B. 2019 - (P7,500) ; 2020- 0
C. 2019 - (P6,000) ; 2020- 0
D. 2019 - (P6,000) ; 2020- P1,500
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