Information for 2018 taken from the separate company income statements of Odette Company and its 60%-owned subsidiary, Lancelot Corporation is presented as follows: Odette Lancelot Company 168,000 Corporation 392,500 Profit On April 1, 2018, Lancelot sold equipment with a carrying value of P30,000 to Odette for P60,000. The equipment is expected to have a remaining useful life of five years from April 1, 2018. Moreover, Lancelot also sold other items of its properties during 2018 resulting to a total gain of P25,500. On September 30, 2018, Odette sold machinery with a carrying value of 40,000 to Lancelot for P25,000. The machinery is expected to last for ten years from the date of sale. 34. How much is the profit attributable to the controlling interest for 2018? A. 386,775 B. 387,600 C. 402,600 D. 402,825 35. How much is the profit attributable to the minority interest for 2018? A. 146,800 B. 147,400 C. 162,400 D. 162,850

Information for 2018 taken from the separate company income statements of Odette Company and its 60%-owned subsidiary, Lancelot Corporation is presented as follows: Odette Lancelot Company 168,000 Corporation 392,500 Profit On April 1, 2018, Lancelot sold equipment with a carrying value of P30,000 to Odette for P60,000. The equipment is expected to have a remaining useful life of five years from April 1, 2018. Moreover, Lancelot also sold other items of its properties during 2018 resulting to a total gain of P25,500. On September 30, 2018, Odette sold machinery with a carrying value of 40,000 to Lancelot for P25,000. The machinery is expected to last for ten years from the date of sale. 34. How much is the profit attributable to the controlling interest for 2018? A. 386,775 B. 387,600 C. 402,600 D. 402,825 35. How much is the profit attributable to the minority interest for 2018? A. 146,800 B. 147,400 C. 162,400 D. 162,850

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 8MC

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On January 1, 2021, PCO purchased 70% ownership of SCO which resulted to a gain on acquisition of P100,000. Net assets of SCO were fairly valued except for inventory which was understated by P1,500,000. A third of these inventories remained unsold as of the end of the calendar year. The operations of the two companies for 2021 are as follows: PCO SCO Sales P3,100,000 P2,600,000 (COGS) (1,300,000) (1,250,000) Gross profit 1,800,000 1,350,000 (OPEX) (200,000) (150,000) Other income 0 200,000 (Other expenses) (120,000) 0 Net income P1,480,000 P 400,000 Q1: In the consolidated statement of comprehensive income for the year ended December 31, 2021, how much is the cost of goods sold? 1,550,000 1,850,000 3,550,000 3,250,000 Q2: based on the information above, In the consolidated statement of comprehensive income for the year ended December 31, 2021, how much is the consolidated net income attributable to…
Sanchez Company acquired inventories on June 1, 2021 from its 60% owned subsidiary, Black Corporation. The inventories were sold for P285,000, including the 20% mark up on cost. Out of these inventories, 70% were sold to outsiders during the current year and the rest was sold in 2022. During 2022, Sanchez Company reported net income of P880,000 and Black Corporation reported net income of P560,000. How much of the realized profit is to be allocated to non-controlling interest in 2022?
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