On January 1, 2020, Merlo Company acquired 80% of the stocks of Fritzie Company for P2,000,000. On this date, Fritzie Company had P1,000,000 of Capital Stock and P800,000 of Retained Earnings. On this date, the carrying values of the identifiable assets and liabilities of Fritzie Company are equal to their fair values. During the year, Merlo Company ships merchandise to Fritzie Company merchandise amounting to P800,000, which includes 25% gross profit rate. At the end of the year, records show the following: Merlo Company Fritzie Company Inventories, Jan 1. P350,000 P120,000 Inventories, Dec. 31 400,000 200,000 Sales 5,500,000 2,500,000 Cost of Sales 3,200,000 1,600,000 Operating expenses 650,000 300,000 Dividends paid 500,000 350,000 The ending inventories of Fritzie Company include merchandise coming from Merlo Company amounting to P50,000. The reported impairment of goodwill in 2020 is P20,000. Assume Merlo Company opted to measure NCI at fair value. In the consolidated income statement, Cost of sales is reported at ?
On January 1, 2020, Merlo Company acquired 80% of the stocks of Fritzie Company for P2,000,000. On this date, Fritzie Company had P1,000,000 of Capital Stock and P800,000 of
During the year, Merlo Company ships merchandise to Fritzie Company merchandise amounting to P800,000, which includes 25% gross profit rate. At the end of the year, records show the following:
Merlo Company Fritzie Company
Inventories, Jan 1. P350,000 P120,000
Inventories, Dec. 31 400,000 200,000
Sales 5,500,000 2,500,000
Cost of Sales 3,200,000 1,600,000
Operating expenses 650,000 300,000
Dividends paid 500,000 350,000
The ending inventories of Fritzie Company include merchandise coming from Merlo Company amounting to P50,000. The reported impairment of
In the consolidated income statement, Cost of sales is reported at ?
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