On January 1, 2020, Subsidiary Company purchased a delivery truck with an expected useful life of 5 years. On January 1, 2022, Subsidiary Company sold the truck to Parent Company and recorded the following entry: Cash 43,800 21,200 Accumulated depreciation Truck Gain on sale of truck 53,000 12,000 Parent holds 60% of Subsidiary's voting shares. Subsidiary reported net income of P55,000 and Parent reported separate net income of P98,000 for 2022. Parent Company continued the method used by Subsidiary Co. in recording the depreciation expense and the same remaining life. 1. The consolidated net income for 2022 a. P 153,000 b. P 141,000 c. P 145,000 d. P 144,000 2. Non-controlling interest in the consolidated net income a. P 18,800 b. P 17, 200 c. P 22,000 d. P 19, 200 3. Depreciation expense recorded by the parent company a. P4,000 b. P 10, 600 C.P 14,600 d. P 10, 950 4. Depreciation expense reported in the Consolidated Income Statement c. P 14,600 d. P 10, 950 a. P4,000 b. P 10, 600 5. The truck and its accumulated depreciation in the Consolidated Balance Sheet a. 43,800 and 14,600 b. 53,000 and 21,200 c. 53,000 and 31,800 d. 43,800 and 21,200
On January 1, 2020, Subsidiary Company purchased a delivery truck with an expected useful life of 5 years. On January 1, 2022, Subsidiary Company sold the truck to Parent Company and recorded the following entry: Cash 43,800 21,200 Accumulated depreciation Truck Gain on sale of truck 53,000 12,000 Parent holds 60% of Subsidiary's voting shares. Subsidiary reported net income of P55,000 and Parent reported separate net income of P98,000 for 2022. Parent Company continued the method used by Subsidiary Co. in recording the depreciation expense and the same remaining life. 1. The consolidated net income for 2022 a. P 153,000 b. P 141,000 c. P 145,000 d. P 144,000 2. Non-controlling interest in the consolidated net income a. P 18,800 b. P 17, 200 c. P 22,000 d. P 19, 200 3. Depreciation expense recorded by the parent company a. P4,000 b. P 10, 600 C.P 14,600 d. P 10, 950 4. Depreciation expense reported in the Consolidated Income Statement c. P 14,600 d. P 10, 950 a. P4,000 b. P 10, 600 5. The truck and its accumulated depreciation in the Consolidated Balance Sheet a. 43,800 and 14,600 b. 53,000 and 21,200 c. 53,000 and 31,800 d. 43,800 and 21,200
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
Related questions
Question
Transcribed Image Text:On January 1, 2020, Subsidiary Company purchased a delivery truck with an expected useful
life of 5 years. On January 1, 2022, Subsidiary Company sold the truck to Parent Company
and recorded the following entry:
Cash
43,800
21,200
Accumulated depreciation
Truck
53,000
12,000
Gain on sale of truck
Parent holds 60% of Subsidiary's voting shares. Subsidiary reported net income of P55,000
and Parent reported separate net income of P98,000 for 2022. Parent Company continued
the method used by Subsidiary Co. in recording the depreciation expense and the same
remaining life.
1. The consolidated net income for 2022
a. P 153,000
b. P 141,000
c. P 145,000
d. P 144,000
2. Non-controlling interest in the consolidated net income
a. P 18,800
b. P 17, 200
c. P 22,000
d. P 19, 200
3. Depreciation expense recorded by the parent company
a. P4,000
b. P 10, 600
c. P 14,600
d. P 10, 950
4. Depreciation expense reported in the Consolidated Income Statement
c. P 14,600
d. P 10, 950
a. P 4,000
b. P 10, 600
5. The truck and its accumulated depreciation in the Consolidated Balance Sheet
c. 53,000 and 31,800
d. 43,800 and 21,200
a. 43,800 and 14,600
b. 53,000 and 21,200
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
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
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Auditing: A Risk Based-Approach to Conducting a Q…
Accounting
ISBN:
9781305080577
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
South-Western College Pub