Show solution in good accounting form. On July 1, 2013, Issue Company purchased 80% of the outstanding shares ofIntrigue Company at a cost of P1,600,000. On that date, Intrigue had P1,000,000 ofcapital stock and P1,400,000 of retained earnings. For 2013, Issue had income ofP560,000 from its separate operations and paid dividends of P300,000. For 2013,Intrigue reported income of P130,000 and paid dividends of P60,000. All the assetsand liabilities of Intrigue have book values equal to their respective fair marketvalues. Assume income was earned evenly throughout the year except for theintercompany transaction on October 1. On October 1, 2013, Issue purchased anequipment from Intrigue for P200,000. The book value of the equipment on thatdate was P240,000. The loss of P40,000 is reflected in the income of Intrigueindicated above. The equipment is expected to have a useful life of 5 years from thedate of sale.1. In the December 31, 2013 consolidated statement of financial position, howmuch is the consolidated net income attributable to the parent company?A. P642,400B. P930,400C. P946,400D. P962,400

The right answer is option D. P962,400

stock and P1,400,000 of retained earni O from its separate operations and pai reported income of P130,000 and paic ilities of Intrigue have book values equ Assume income was earned evenly thr mpany transaction on October 1. On Oc ent from Intrigue for P200,000. The bo

stock and P1,400,000 of retained earni O from its separate operations and pai reported income of P130,000 and paic ilities of Intrigue have book values equ Assume income was earned evenly thr mpany transaction on October 1. On Oc ent from Intrigue for P200,000. The bo

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 18P

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