AA Corporation holds 80 percent of the stock of Movie Production Inc. During 20x9, AA purchased an inventory of snack bar items for P40,000 and resold P30,000 to MM Productions for P48,000. MM Productions Inc. reported sales of P67,000 in 20x9 and had inventory of P16,000 on December 31, 20x9. The companies held no beginning inventory and had no other transactions in 20x9. What amount of net income will be reported in the 20x9 consolidated income statement?
AA Corporation holds 80 percent of the stock of Movie Production Inc. During 20x9, AA purchased an inventory of snack bar items for P40,000 and resold P30,000 to MM Productions for P48,000. MM Productions Inc. reported sales of P67,000 in 20x9 and had inventory of P16,000 on December 31, 20x9. The companies held no beginning inventory and had no other transactions in 20x9. What amount of net income will be reported in the 20x9 consolidated income statement?
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter18: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 19P
Related questions
Question
AA Corporation holds 80 percent of the stock of Movie Production Inc. During 20x9, AA purchased an inventory of snack bar items for P40,000 and resold P30,000 to MM Productions for P48,000. MM Productions Inc. reported sales of P67,000 in 20x9 and had inventory of P16,000 on December 31, 20x9. The companies held no beginning inventory and had no other transactions in 20x9. What amount of net income will be reported in the 20x9 consolidated income statement?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning