Following are several figures reported for PT and SS of December 31, 20x5:
PT
Inventory. . . . . . . . . . . . . . . . . . . . . .
P 400,000
Sales . . . . . . . . . . . . . . . . . . . . . . . . .
800,000
Investment income . . . . . . . . . . . . .
Not given
Cost of goods sold . . . . . . . . . . . . . .
400,000
Operating expenses. . . . . . . . . . . . . .
180,000
SS
P 200,000
600,000
300,000
250,000
PT acquired 70 percent of SS in January 20x4. In allocating the newly acquired subsidiary’s for value at the acquisition
date, PT noted that SS had developed a customer list worth P65,000 unrecorded on its accounting records and had a five
year remaining life, any remaining excess fair value over SS’ book value was attributed to goodwill. During 20x5, SS sells
inventory costing P 120,000 to PT for P 160,000. Of this amount, 20 percent remains unsold in PT’s warehouse at year-end.
For PT’s consolidated reports, determine the following amounts to be reported for the current year.
1. Inventory
a. None
c. 592,000
b. 400,000
d. 600,000
2. Sales
a. None
b. 800,000
c. 1,240,000
d. 1,400,000
3. Cost of goods sold
a. None
b. 400,000
c. 548,000
d. 700,000
4. Gross profit
a. None
b. 400,000
c. 692,000
d. 700,000
5. Operating expenses
a. None
b. 180,000
c. 430,000
d. 443,000
6. Controlling interest in consolidated Net income
a. None
b. 800,000
c. 240,300
d. 249,000
7. Non-controlling interest in the consolidated Net Income
a. None
b. 8,700
c. 15,000
d. None of the above
8. Consolidated Net Income
a. None
b. 800,000
c. 240,300
d. 249,000
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