tive expenses, P84,000 p00 280,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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How much is the balance of AMSTERDAM's

Transcribed Image Text:The following pre-tax amounts pertaining to AMSTERDAM Company for the year ended December 31, 2021:
• Sales, P400,000
• Selling and adminstrative expenses, P84,000
• Other income, P40,000
• Interest expense, P4,000
• Cost of goods sold, P280,000
• Oorrection of prior period error - credit, P16,000
• Post-tax results of discontinued operations - credit, P40,000
• Cumulative effect of change in accounting policy - debit, P24,000
• Retained earnings, January 1, 2021 (not yet restated), P1,600,000
• Dividends declared, P12,000
• Income tax rate is 30%
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