Perena CorporationA. 272,500B. 280,000C. 275,000D. 277,500 Income statement information for the year 2020 for Perena Corporation and its 60% ownedsubsidiary, Amihan Corporation is as follows:PerenaAmihanSales .P450,000200,000P250,000125,000P175,000125,000P 50,000Cost of SalesGross profit .Operating expenses25,000Amihan's net income.P 25,000Perena's separate income. P125,000Intercompany sales for 2020 are upstream (from Amihan to Perena) and total P50,000. Perena'sDecember 31, 2019 and December 31, 2020 inventories contain unrealized profits of P2,500 andP5,000 respectively.The Consolidated cost of sales for 2020:

Income statement information for the year 2020 for Perena Corporation and its 60% owned subsidiary, Amihan Corporation is as follows: Perena Amihan Sales P450,000 200,000 P175,000 125,000 P 50,000 Cost of Sales Gross profit P250,000 125,000 Operating expenses Amihan's net income. Perena's separate income . 25,000 P 25,000 P125,000 Intercompany sales for 2020 are upstream (from Amihan to Perena) and total P50,000. Perena's December 31, 2019 and December 31, 2020 inventories contain unrealized profits of P2,500 and P5,000 respectively. The Consolidated cost of sales for 2020:

Income statement information for the year 2020 for Perena Corporation and its 60% owned subsidiary, Amihan Corporation is as follows: Perena Amihan Sales P450,000 200,000 P175,000 125,000 P 50,000 Cost of Sales Gross profit P250,000 125,000 Operating expenses Amihan's net income. Perena's separate income . 25,000 P 25,000 P125,000 Intercompany sales for 2020 are upstream (from Amihan to Perena) and total P50,000. Perena's December 31, 2019 and December 31, 2020 inventories contain unrealized profits of P2,500 and P5,000 respectively. The Consolidated cost of sales for 2020:

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter11: The Corporate Income Tax

Section: Chapter Questions

Problem 5P: Fisafolia Corporation has gross income from operations of $210,000 and operating expenses of...

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