Grumpy is a 90%-owned subsidiary of Margot Corporation, acquired at book value several years ago. Comparative separate company income statements for these affiliated corporations for 2019 are as follows: Margot Corporation P 750,000 54,000 Grumpy Corporation P350,000 Sales. Dividend income. Gain on building 15,000 P 819,000 P 500,000 150,000 P 650,000 P 169,000 On January 5, 2019 Margot sold a building with a 10-year remaining useful life to Grumpy as a Income credits P350,000 P200,000 Cost of sales. Operating expenses 75,000 P275,000 P 75,000 Income debits . Net income of P15,000. Grumpy paid dividends of P60,000 during 2019. The Non-controlling interest in net income for 2016:
Grumpy is a 90%-owned subsidiary of Margot Corporation, acquired at book value several years ago. Comparative separate company income statements for these affiliated corporations for 2019 are as follows: Margot Corporation P 750,000 54,000 Grumpy Corporation P350,000 Sales. Dividend income. Gain on building 15,000 P 819,000 P 500,000 150,000 P 650,000 P 169,000 On January 5, 2019 Margot sold a building with a 10-year remaining useful life to Grumpy as a Income credits P350,000 P200,000 Cost of sales. Operating expenses 75,000 P275,000 P 75,000 Income debits . Net income of P15,000. Grumpy paid dividends of P60,000 during 2019. The Non-controlling interest in net income for 2016:
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter15: S Corporations
Section: Chapter Questions
Problem 25P
Related questions
Topic Video
Question
a) 7,650
b) 6,150
c) 6,000
d) 7,500
Transcribed Image Text:Grumpy is a 90%-owned subsidiary of Margot Corporation, acquired at book value several years ago.
Comparative separate company income statements for these affiliated corporations for 2019 are as
follows:
Margot
Corporation
P 750,000
Grumpy
Corporation
Sales .
P350,000
Dividend income
Gain on building .
Income credits.
Cost of sales...
Operating expenses.
Income debits.
Net income.
On January 5, 2019 Margot sold a building with a 10-year remaining useful life to Grumpy as a
of P15,000. Grumpy paid dividends of P60,000 during 2019.
54,000
15,000
P 819,000
P 500,000
150,000
P 650,000
P 169,000
P350,000
P200,000
75,000
P275,000
P 75,000
The Non-controlling interest in net income for 2016:
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 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
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning