The following data are submitted relative to Pentagon Holdings Corp. and its subsidiary, Slogan Generators Co., whose stocks it acquired on January 1, 2008. Pentagon Slogan Holdings Co. Generators Co. Par value of stock outstanding P500,000 P 75,000 Portion of stock owned by Pentagon 90% Retained Earnings, January 1, 2008 180,000 45,000 Cost to Pentagon of stock acquired 110,000 Net income from own operations during 2008 45,000 5,000 Dividends paid during 2008 30,000 4,500 The Pentagon Holdings Corp. has adopted the equity method of accounting for investment. Any excess is attributable to an asset with a 10 years life. 1. The Consolidated Retained Earnings of Pentagon and Slogan as of December 31, 2008
The following data are submitted relative to Pentagon Holdings Corp. and its
subsidiary, Slogan Generators Co., whose stocks it acquired on January 1, 2008.
Pentagon Slogan
Holdings Co. Generators Co.
Par value of stock outstanding P500,000 P 75,000
Portion of stock owned by Pentagon 90%
Cost to Pentagon of stock acquired 110,000
Net income from own operations
during 2008 45,000 5,000
Dividends paid during 2008 30,000 4,500
The Pentagon Holdings Corp. has adopted the equity method of accounting for investment.
Any excess is attributable to an asset with a 10 years life.
1. The Consolidated Retained Earnings of Pentagon and Slogan as of December 31, 2008
would be
a. P195,000 c. P199,500
b. P199,050 d. P199,300
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