On January 1, 2021, ABC purchased 80% of the outstanding shares of DEF at a cost of P960,000. On that DEF had P600,000o worth of outstanding shares and P600,000 worth of accumulated profits. For 2021, AB had income of P336,000 from its own operations and paid dividends of P180,000. For 2021, DEF reported income of P64,000 and paid dividends of P36,000. All of the assets and liabilities of DEF have book values equal to their market value. On January 1, 2021, ABC sold equipment to DEF for P120,000. The book value the equipment on that was P144,000. The loss of P24,000 is reflected in the income of ABC indicated abo The equipment is expected to have a useful life of five years from the date of the sale. In the December 3 2011 acidionu
On January 1, 2021, ABC purchased 80% of the outstanding shares of DEF at a cost of P960,000. On that DEF had P600,000o worth of outstanding shares and P600,000 worth of accumulated profits. For 2021, AB had income of P336,000 from its own operations and paid dividends of P180,000. For 2021, DEF reported income of P64,000 and paid dividends of P36,000. All of the assets and liabilities of DEF have book values equal to their market value. On January 1, 2021, ABC sold equipment to DEF for P120,000. The book value the equipment on that was P144,000. The loss of P24,000 is reflected in the income of ABC indicated abo The equipment is expected to have a useful life of five years from the date of the sale. In the December 3 2011 acidionu
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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A. 255,600
B. 240,000
C. 245,600
D. 248,400
Transcribed Image Text:On January 1, 2021, ABC purchased 80% of the outstanding shares of DEF at a cost of P960,000. On that date,
DEF had P600,000 worth of outstanding shares and P600,000 worth of accumulated profits. For 2021, ABCV
had income of P336,000 from its own operations and paid dividends of P180,000. For 2021, DEF reported
income of P64,000 and paid dividends of P36,000. All of the assets and liabilities of DEF have book values
equal to their market value. On January 1, 2021, ABC sold equipment to DEF for P120,000. The book value of
the equipment on that was P144,000. The loss of P24,000 is reflected in the income of ABC indicated above.
The equipment is expected to have a useful life of five years from the date of the sale. In the December 31,
2021 consolidated statement of financial position, the non-controlling interest in net assets of Subsidiary
should be presented at
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