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Soprano Co. purchased a 90% interest in the Tenor Co. on January 1, 2020 for P600,000. Any excess of cost is attributed to goodwill. The equity balances of Tenor are as follows: 1/1/2020 12/31/2023 Common stock, P10 par 100,000 120,000 Paid in excess of par 200,000 260,000 Retained earnings 250,000 400,000 The only change in paid in capital is a result of a 20% stock dividend paid in 2022. The cost of equity conversion to bring the investment account to its December 31, 2023 balance is? ○ 135,000 ○ 114,000 ○ 207,000 ○ 162,000

Soprano Co. purchased a 90% interest in the Tenor Co. on January 1, 2020 for P600,000. Any excess of cost is attributed to goodwill. The equity balances of Tenor are as follows: 1/1/2020 12/31/2023 Common stock, P10 par 100,000 120,000 Paid in excess of par 200,000 260,000 Retained earnings 250,000 400,000 The only change in paid in capital is a result of a 20% stock dividend paid in 2022. The cost of equity conversion to bring the investment account to its December 31, 2023 balance is? ○ 135,000 ○ 114,000 ○ 207,000 ○ 162,000

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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Soprano Co. purchased a 90% interest in the Tenor Co. on January 1, 2020 for P600,000. Any excess of cost is attributed to goodwill. The equity balances of Tenor are as follows: 1/1/2020 12/31/2023 Common stock, P10 par 100,000 120,000 Paid in excess of par 200,000 260,000 Retained earnings 250,000 400,000 The only change in paid in capital is a result of a 20% stock dividend paid in 2022. The cost of equity conversion to bring the investment account to its December 31, 2023 balance is? ○ 135,000 ○ 114,000 ○ 207,000 ○ 162,000
Transcribed Image Text:Soprano Co. purchased a 90% interest in the Tenor Co. on January 1, 2020 for P600,000. Any excess of cost is attributed to goodwill. The equity balances of Tenor are as follows: 1/1/2020 12/31/2023 Common stock, P10 par 100,000 120,000 Paid in excess of par 200,000 260,000 Retained earnings 250,000 400,000 The only change in paid in capital is a result of a 20% stock dividend paid in 2022. The cost of equity conversion to bring the investment account to its December 31, 2023 balance is? ○ 135,000 ○ 114,000 ○ 207,000 ○ 162,000
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