Bulalo Corporation acquired 30% of Tawilis Inc.’s common stock for P300,000 book value on January 1, 2020 when Tawilis equity consisted of P500,000 capital stock and P500,000 retained earnings. On October 1, 2020 Bulalo bought an additional 30% interest in Tawilis for P354,000. In both cases, Tawilis book value equaled the fair value. Tawilis had income of P240,000 earned evenly through 2020 and paid no dividends. The consolidated income statement of Bulalo Corporation and Subsidiary for the year 2020 should show controlling income of: 90,000 144,000 96,000
Bulalo Corporation acquired 30% of Tawilis Inc.’s common stock for P300,000 book value on January 1, 2020 when Tawilis equity consisted of P500,000 capital stock and P500,000 retained earnings. On October 1, 2020 Bulalo bought an additional 30% interest in Tawilis for P354,000. In both cases, Tawilis book value equaled the fair value. Tawilis had income of P240,000 earned evenly through 2020 and paid no dividends. The consolidated income statement of Bulalo Corporation and Subsidiary for the year 2020 should show controlling income of: 90,000 144,000 96,000
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 25E
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Bulalo Corporation acquired 30% of Tawilis Inc.’s common stock for P300,000 book value on January 1, 2020 when Tawilis equity consisted of P500,000 capital stock and P500,000 retained earnings . On October 1, 2020 Bulalo bought an additional 30% interest in Tawilis for P354,000. In both cases, Tawilis book value equaled the fair value. Tawilis had income of P240,000 earned evenly through 2020 and paid no dividends. The consolidated income statement of Bulalo Corporation and Subsidiary for the year 2020 should show controlling income of:
90,000
144,000
96,000
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